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The Niche-to-mainstream Divide is Steadily Closing in the NFT Industry

More eyes will be drawn to the NFT sector, whether they are celebrities, huge brands, or companies, resulting in broad adoption.

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#nft #nfthours #market #niche #changes

Nonfungible tokens (NFTs) are no secret that they are still a fringe topic. Despite their meteoric rise in popularity in 2021, a sizable portion of the population remains unaware of what an NFT is. Looking at the graph below, it’s clear that there’s still a lot of work to be done before NFTs become widespread.

However, recent months have shown that this is a possibility, and there have been numerous signals of awareness and adoption, which we shall explain.

Celebrities

Celebrities have played an important role in the growth of NFTs. Initially, the NFT space was populated by artists, creators, and traders, all of whom laid the groundwork for what is now the NFT space. Since then, a number of important figures have entered the sector, either through their own efforts or simply through collecting. The current surge of celebrities has been incredibly beneficial in terms of broadening the reach of NFTs, but in the NFT market, everyone starts from scratch, and value does not come from influence. Many celebrities who created NFT collections without thinking about the long term have had their NFTs lose value, supporting this thesis.

There is a distinction to be made between those who have added value to the space and those who have sought to profit from it. Pharrell Williams, Snoop Dogg, Jimmy Fallon, Tom Brady, Paris Hilton, Post Malone, The Weeknd, Stephen Curry, Lil Baby, Timbaland, and DJ Khaled are just a few examples. They’re all celebrities who have purchased items from the collections and used them as profile pictures.

These celebrities have undoubtedly aided in the growth of the NFT sector, and as the number of celebrities in the space grows, there is no doubt that their influence will aid in the mainstreaming of crypto culture. But, most crucially, they are joining us, not altering the dynamics or establishing the rules. The NFT area is a communal effort, and we’re all working together to create value.

Adidas

The Adidas collaboration with Bored Ape Yacht Club, Gmoney, and PUNKS Comics is maybe the most significant mainstream bridge to date. Adidas introduced a new Twitter account, Adidas Originals, alongside these new partners to announce their goals, which shocked the NFT world with excitement.

They disclosed a number of major things in this space, including their plans to enter the Metaverse, a digital realm where users would be able to engage virtually in the future. To demonstrate their point, they published a trailer that shows Adidas’ Bored Ape and representations of its new partners moving through the skies and into the Metaverse in a seamless manner.

The newly purchased Bored Ape Yacht Club NFT #8774, a very specific blue ape they named Indigo Herz, with heart glasses and a fisherman’s cap, would be the face of its brand in the Metaverse, was also changed to the Adidas Originals account’s profile image.

What makes this so revolutionary?

Individuals have dominated the NFT space thus far. Individuals have pushed the sector forward, whether they be normal traders, inventors, or even celebrities. Now enter Adidas, a well-known and well-liked company with four million Twitter followers and 26 million Instagram followers. The presence of this one brand has the potential to attract more attention to the space than all of the individuals combined, resulting in a large increase in the number of NFTs.

Adidas also teamed with Coinbase, the biggest cryptocurrency trading platform, to pursue this objective. It also collaborated with The Sandbox, one of the most well-known metaverse games. Adidas presented their very own Sandbox plot in a tweet, a piece of digital land that formally establishes its position within this metaverse.

Ubisoft

With the announcement this week that Ubisoft Quartz will be available on the Tezos blockchain, Ubisoft became the next big corporation to go the Web3 path. The platform’s idea is that players will be able to use cryptocurrencies to buy and sell in-game items known as “digits.” This is significant because it will give players ownership of their in-game items, which in traditional games would only be available within and be dependent on those games’ own specific ecosystems, whereas the blockchain allows for ownership that is fully independent of a game world.

What is the significance of this?

Ubisoft is one of the top 25 largest gaming firms in the world, with a market capitalization of $5.8 billion. If this is only the initial step towards NFTs, it will undoubtedly be capable of much more in the future. Similar to Adidas and other major brands who have entered the market, they are all succeeding in bringing more attention to the potential of NFTs as a serious technology.

Despite the fact that Ubisoft’s entry marked a significant step forward in the mainstreaming of NFTs, their announcement was not without criticism. In fact, their YouTube video had over 20,000 dislikes in the first hour, prompting the firm to delist the video due to widespread backlash on social media.

When reading the comments, it’s clear that the hate comes from a variety of places, including:

  • Dislike the company irrespective of NFTs.
  • Dislike the payments; the cost may be out of reach for many.
  • Dislike the energy consumption that NFTs require.
  • Dislike NFTs in general.

This perspective confirms the reality that NFTs require a great deal of work before being accepted and adopted by the general public. But it’s not just individuals; several of the most popular gaming sites, such as Steam, have completely removed blockchain games from their shop. It’s unclear whether Ubisoft will stick to its original goals. However, its first conviction has underlined the reality that NFTs are rapidly gaining traction, particularly if a billion-dollar corporation is considering adopting them!

But why are NFTs so divisive, and how is this stopping them from becoming more mainstream?

What is keeping NFTs from becoming widespread, and what can be done to improve them?

Two of the most fundamental reasons why NFTs have been unable to join the mainstream are stigma and a lack of trust. When it comes to persons who have been the victims of rug pulls, some of the stereotypes are true to some level. Furthermore, many people have become subject to the growing threat of scams and hacking. You’ve undoubtedly also heard that “NFTs are a pyramid scheme,” “NFTs are a fraud,” and “NFTs are for money laundering.” However, this does not represent the complete picture.

There are negative actors in the arena who engage in this conduct, just as there are scammers in the real world. However, this does not cover the full area. Furthermore, a hardware wallet, also known as a cold wallet, can completely protect your NFTs. It’s stored on the blockchain, and only you have access to it since you hold the private key.

To further minimize frauds, improved channels of communication for NFT users must surely be established, as well as safer platforms that protect the safety of people who utilize them. Rug pulls are a problem, but they don’t happen all over the place. There are still trustworthy NFT projects that are genuine and reputable. Rather than lumping NFTs into a broader category like “scam,” a better knowledge of the teams behind them is required, as is more investigation before making investments.

Another roadblock to general adoption is the fact that, if you’re new to the area, setting up a Coinbase account and MetaMask wallet may be quite complex if you don’t know where to begin. Every step of the journey involves fees, transfers, and hassles, making this a significant barrier to entrance. This will dissuade the average person from even considering entering the space. So, if NFTs are to appeal to the general public, the process of getting started must be simplified.

There is a need for assistance. Unless you are highly dedicated, you will not be able to setup a wallet, start trading, and make transfers on your own. It is a magnificent effort for anyone to undertake, and as a result, we require mentors, assisting hands, and methods of assisting people throughout the process. The complexities of getting started are a significant barrier to entrance, and while manuals are important, something more comprehensive is required to make everyone’s lives easier. It’s tough to predict when NFTs will become mainstream till then.

Moving forward

NFTs still have a long way to go before becoming ubiquitous. However, as this essay explains, there are already a lot of strong signs that they will in the future. More eyes will come to the sector, whether they are celebrities, huge brands, or businesses, and if the timing coincides and people recognize this, a shift in thought may occur. But, first and foremost, much work in the areas of education and accessibility must be completed.

Both regulation and decentralization have apparent advantages and disadvantages. Frameworks and safety are possible with centralized platforms. Decentralization, on the other hand, allows for more creativity and freedom. Regulators, on the other hand, restrict ownership and free reign, while decentralization allows scammers and bad actors to flourish.

What we do know is that the NFT is a new technology that is still in its early stages of development. However, mainstream firms and brands are already showing interest. Whether gradual or rapid, the adoption of NFTs is unavoidable.

NFT

Could this trademark application indicate that PayPal is developing an NFT market? 

A trademark application for blockchain and cryptocurrency technology has been submitted by PayPal. Some claim that the file has something to do with Web3 and the metaverse, although it may be tied to an NFT marketplace.

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A recent trademark application by PayPal has been found, and it suggests the development of a service pertaining to several facets of blockchain technology. The file, which was made on October 18, makes a notable allusion to the potential introduction of a non-fungible token (NFT) market.

For its logo, PayPal submitted two trademark applications. The first one concerns “downloadable software” for cryptocurrency trading and storage. The second discusses cryptocurrency-related payment processing services.

Although users may currently buy cryptocurrencies on PayPal’s platform, this filing suggests that there may be more to come. The concept of assets is substantially broader in the filing’s terminology. Mike Kondoudis, a trademark lawyer licensed by the USPTO, claimed on Twitter that this filing relates to NFTs and the metaverse.

Although there is no proof to support this, it would not be shocking if it were true. The finance business would be adding its name to a lengthy list of businesses that are starting to make inroads into the Web3 and metaverse spaces.

PayPal is investing more in cryptocurrency.
Over the past two years, PayPal has intensified its focus on cryptocurrencies. First, the company made a huge announcement for the industry by saying that consumers would be able to purchase cryptocurrency on its platform.

However, it didn’t start enabling users to move those funds into wallets outside of the network until recently. It indicated that it would roll out additional crypto-related features in the latter part of last year. One of those additions might be an NFT marketplace.

It teamed up with Coinbase’s TRUST network more recently. This was viewed by many as an endorsement of the sector. The TRUST network upholds consumer security and privacy while adhering to the banking industry’s Travel Rule.

Increased Criticism of Payment Giant
Additionally, PayPal has been in the spotlight for all the incorrect reasons. The business has recently come under fire for a contentious policy that penalized users for disseminating false information. Later, it claimed that false information was released with the amended policy. Crypto aficionados, however, were eager to point to this as evidence of the value of decentralization.

PayPal established a blockchain and cryptocurrency advisory committee earlier this year. According to the company’s management, working with governments is essential to overcoming obstacles and seizing possibilities.

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NFT

Seba Bank, a cryptocurrency company, aims to store valuable NFTs

Seba Bank, a cryptocurrency company, has launched its first NFT service, a blue-chip NFT-specific institutional-grade, certified, and independently audited hot and cold storage custody product.

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The launch comes in response to requests from customers to keep their NFTs with the bank alongside other crypto assets, such as the already-approved Bored Ape Yacht Club, Cryptopunk, and Clone X NFTs. The bank stated that new collections would be added based on customer demand.

With its newest offering, Seba Bank seeks to entice investors who view NFTs as an asset class and crypto natives. Not your keys, not your bitcoin is a well-known phrase in the crypto sphere, and adherents of this maxim could object to having their Apes or Punks stored with a third-party custodian.

Urs Bernegger, co-head of markets and investment solutions at Seba Bank, however, highlights a growing group of NFT holders who are more at ease handing up their NFTs and private keys to a company.

They don’t want the key because they aren’t even aware of how to handle and store it. He claimed that they’re more concerned with damaging the key than giving it to a bank.

It’s a significant issue. Between 2.3 million and 3.7 million bitcoins, according to Chainalysis, are trapped in inaccessible wallets. Numerous accounts of people have lost millions owing to losing private keys, including Russian officials, students, and engineers. Families have also been prevented from accessing substantial quantities of money following sudden deaths in which wallet owners had not disclosed their private keys.

Bernegger asserts institutional custody can be advantageous for native crypto users as well. There has been an increase in businesses providing services that employ NFTs as collateral for conventional banking services like loans.

Seba Bank is thinking about implementing these features in the future. Based in the crypto-friendly Swiss town of Zug, the four-year-old bank already backs several investing, credit, lending, and staking options for cryptocurrencies and might extend them to NFTs.

“Instead of traveling to the market, for instance, we could create a club for collectors and assist them in finding other collectors. There are a few things we have in mind, but we laid the groundwork by storing NFTs securely at first, “explained he.

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Projects

The NFT album maker for Kings of Leon now includes a metaverse music venue

YellowHeart, a Web3 ticketing startup, is opening a metaverse music venue in an effort to transform how performers, teams, and event organizers distribute tickets and interact with fans.

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The facility, constructed on Spatial, will feature Grammy-nominated blues musician G.Love as its opening act later this year. Fans can communicate with one another, participate in meet-and-greets before and after performances, and use several screens to view what is happening in various areas of the stadium simultaneously.

They will soon be able to order meals and drinks before the event, which will also be available as digital things.

The idea of an online concert has so far primarily been popularized by big gaming companies. The most well-liked virtual competitions have occurred on sites like Fortnite and Roblox. Ariana Grande’s Fortnite concert in August 2021 received 78 million viewers. Next month, Decentraland will host its second Metaverse Music Festival. Over 100 musicians are on the lineup, including well-known performers like Ozzy Osbourne and Soulja Boy.

In addition to throwing an event, YellowHeart, which assisted Kings of Leon in releasing an NFT version of their most recent album, stated that it hoped to accomplish more. It was established in 2017 with the lofty goal of revolutionizing the music ticketing sector as a whole, which has historically been dominated by powerful reselling organizations and exclusive ticketing relationships. These alliances frequently impose limitations on what purchasers can and cannot do with their tickets. Trying to resell a ticket for a concert you can’t go to might be a headache.

YellowHeart believes these issues can be resolved by returning control to artists and fans via web3 technology. Additionally, it may provide advantages that cannot be programmed into conventional tickets.

“These range from complete albums to personalized vinyl records, exclusive merchandise, and immersive visual art. Web3 tickets also allow performers to update fans on new tour dates, music releases, giveaway possibilities, and much more, according to the business.

It has already collaborated with well-known figures, including Julian Lennon, Maroon 5, and MGM Resorts. Contrary to the non-NFT versions offered on Spotify, iTunes, and other platforms, those obtained through YellowHeart entailed particular customer benefits.

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