The Essential Checklist for NFT Collectors
Sound.xyz: Steaming Service Enemy #1?
Here is the breakdown of today's newsletter:
✅ The Essential Checklist for NFT Collectors!
🎵 Sound.xyz: Steaming Service Enemy #1?
Another line of tennis NFTs have come to market. (@andy_murray)
Open Sea has teamed up with Zora to support their network. We're interested to see what initiatives will result from this partnership. (WM)
Navigating NFT Projects: The Essential Checklist for Investors
The NFT space is exciting and a breeding ground for creativity, innovation, and huge potential.
However it's also a field where buyers need to look at things with a critical eye. Ether's recent decision to stop its Public Mint because there didn't seem to be enough desire for it shows this.
So, what are the most important things to keep in mind about NFT teams and projects?
Conviction: A truly successful NFT team stands unwavering in its convictions. They neither cease the minting process nor diminish the collection size in the face of challenges. Ether's recent course of action – pausing the mint and reducing the collection – raises questions about the depth of its commitment.
Pricing and Accessibility: NFT projects should prioritize wider accessibility over immediate gains. For example, instead of suspending the mint process, Ether could have initially lowered the mint price to make it more affordable for a broader audience.
Strategy and Execution: Effective strategy and competent execution are the backbone of any successful project. Signs of poor execution and flawed strategy; such as Ether's recent actions can be red flags, hinting at potential pitfalls ('rugs') ahead.
Focus on Building and Providing Value: If a project aims to introduce diverse revenue streams, it needs to concentrate on building and delivering value. A gradual increase in the floor price can naturally lead to the complete minting of the project.
Sustainability over Cash Grabs: Be wary of PFP NFT projects that lack supplementary revenue streams and merely end up as cash grabs. The true worth of an NFT project lies in its ability to execute and deliver consistently, regardless of the scale of their aspirations.
Market Understanding: A solid understanding of the market is fundamental to the success of an NFT project. Actions that reflect a lack of market comprehension and poor execution should prompt investors to think twice.
Trust and Integrity: Lastly, trust and integrity are precious commodities in the rapidly evolving NFT space. NFT teams should be grounded in Web3, committed to building innovative projects, and focused on delivering real value.
The Drop: As an investor, it's crucial to associate with NFT projects that display these characteristics. Stake your money in projects that demonstrate clear vision, strategic execution, and commitment to their community.
After all, your investment choices today shape the NFT landscape of tomorrow.
Sound.xyz: Steaming Service Enemy #1?
We see NFTs come in many different forms. From basic pictures to complex generative code, NFTs have the ability to store multiple types of media/data types, including sound. Along with that, NFTs allow artists to interact with their fan bases on a more personal level and control more of their distribution/royalties, thus why it molds so well with the music industry.
A startup called Sound.xyz has raised a round of $5 million, led by a16z, to prove this. Sound has recognized that there is an inherent disconnect between artists’ pay and streaming fees. Time and time again, we hear that artists are not getting paid their fair share and they are at the mercy of the major streaming giants, such as Spotify and Apple Music. This venture plans to give artists the power to control their own distribution, thus making the upfront money. For example, if an artist sells $10,000 worth of NFTs in minutes, they will make the same amount as if they did with thousands of streams on Spotify. With this platform, Sound plans to give power to the artist, with future endeavors of allowing artists to crowdfund from their fans in order to work on new projects/visions.
The Drop: Let’s face it: to the mass majority, NFTs are seen as just pictures. This, paired with the downward market, has caused people to be very closed-minded on the efficacy of NFTs and the ways to harness their technology. What we must keep in mind is that NFTs are a vessel, a vessel of transactions. The true power of NFTs lies in the integration between Web2 and the opportunity of Web3 and finding the balance between them. There are many problems in the real world, artist pay included, which can be counteracted with the use of NFTs, specifically blockchain technology. It’s just up to one person or a group of persons to put their minds to it and help alleviate these issues, while still ensuring positive sector growth. WAGMI.
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Disclaimer: The Drop DOES NOT provide financial advice. All content is for informational purposes only. The Drop is not a registered investment, legal, or tax advisor or a broker/dealer. Trading any crypto-related asset is extremely risky and could result in significant capital losses.