NFTs are one of the driving forces behind this transition, and have already facilitated successful use-cases across various industries. Many people believe that big NFT projects (such as BAYC or Doodles) are coveted because holders can make profit, but in fact the community element of NFTs is what makes users excited to invest. The ability to engage with an artist, a celebrity, or a group of like-minded people is what gives meaning to blockchain-based fandoms.
All kinds of communities have formed around NFTs, some more niche than others.
- Sneakerheads are (virtually) lining up to get a piece of Nike’s RTFKT project.
- K-pop lovers can collect exclusive digital content from their favorite idols on Momentica.
- Basketball fans have their own marketplace dedicated to official NBA digital collectibles.
Some projects provide access to a community via NFT Passes, others center around unique PFPs, and many also create tokens that reward fans for participating. We’ve already seen these mechanisms applied to all kinds of artists and brands with meaningful (and often lucrative) results for the creators and the fans.
NFTs and the Music Industry
NFT ecosystems built around musicians are a highly anticipated use case for Web3 companies, perhaps because musicians tend to have more intimate relationships with their fanbases. Blockchain services expand on what Twitter and Soundcloud offer, by bringing the notion of ownership to music fans.
An artist can sell ownership of their music, or offer their fans NFT collectibles – both are extensions of activities like streaming, buying merchandise or attending gigs. Fan token mechanics can also provide a way for a communities to vote on activities or interact with an artist directly, getting more of a say in how and where their funds are used.
Web3 technology allows fans to invest in an artist and have it documented forever on the Blockchain, creating financial ties between the artist and their fandom. This opens channels where fans can get tangibly rewarded for supporting their idols, or even create a “Proof of Fandom” system that gives selective access or limited edition digital assets that are not available to others.
Hurdles for Companies Moving into Web3
Mass adoption of crypto and Web3 will be a decisive factor in helping blockchain-based fandoms go mainstream. Lack of knowledge about cryptocurrency, wallets, and the underlying technology is a big obstacle when attempting to onboard Web2 users. However, fan tokens may be easier for masses to adopt because they’re tied to something familiar in the real world. The love that fans have for their idols may also drive them to learn about new technologies, creating a more accessible gateway into Web3.
Another hurdle will be dispelling negative sentiments held by many Web2 users regarding NFTs. One way that social media platform Reddit achieved this was by pushing the term “digital collectibles” instead of NFT, so that users didn’t immediately dismiss the idea. The success of this strategy showed that rethinking the way NFTs and crypto are introduced to unfamiliar users will be vital going forward.
Environmental impact is also a commonly cited argument, as blockchains like Bitcoin and Ethereum consume incredible amounts of electricity. However, many green alternatives have since been developed and are preferred by many big brands and artists. Luniverse is one such alternative, which has made it a top choice for entertainment companies looking to expand their fandoms into Web3 – you can read about some Luniverse-based projects below!
MOMENTICA is the flagship platform operated by LEVVELS, provides novel and innovative fan-artist experiences worldwide. The platform enables fans to collect and exchange diverse formats of digital collectibles. While the initial service will focus on K-Pop artists, the scope of the service will expand to include different artists and genres of music.
LEVVELS Inc. is a Los Angeles-based company operating a future-proof platform to provide blockchain-based projects for global fandoms and their artists. The company is a joint venture between Dunamu, a worldwide standard setter in blockchain and fintech technology, and Hybe, the global entertainment lifestyle platform company housing multinational music labels.
CYPHRLY is a curation-based NFT marketplace that provides authentic digital collectibles created with cutting-edge technology. We collaborate with IP holders, artists and brands to help them enter the world of Web3. Our platform expands the values of digital collectibles with physical merits (Digital Pair) and data-driven features (LIVE NFTs). Based on environmentally-sustainable technology developed by Lambda256, the blockchain company of Dunamu, CYPHRLY presents a community where fans can freely communicate together.
The NFT trading platform of Upbit, the South Korean crypto exchange. Luniverse-based NFTs are issued and distributed on Upbit NFT.
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