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- š #69: NFTs Didn't Work
š #69: NFTs Didn't Work
The first-hand signal from NFT NYC. Telegram and Japan's Sony Bank go crypto. The rise of Memecoins. Funding Q1 snapshot. Record stablecoin supply. Paradigm plans $750M fund. Top charts & more.
Hey, itās Marc. āļø
Reporting from New York this week, I bring first-hand impressions from NFT NYC. Spoiler: The turnout wasn't great, indicative of a broader trend ā the decline of NFTs for consumer brands. We also talk about whatās behind Memecoins and Q1 funding.
Be inspiredāØ
āPersist, pivot, or concede. Itās up to us, our choice every time.ā ā Matthew McConaughey
š Top 4 Reads
āØ Web3 & Brands
Beyond NFTs š¼ļø
Yesterdayās NFT NYC conference day was a ghost town.
For me, this is symbolic for the inevitable decline of the āNFTā as a concept that was hyped as a single vertical for brands to innovate in.
Itās also the sign of an awakening that consumer engagement is hard and doesnāt get easier by throwing ādigital collectiblesā, aka. NFTs, at consumers.
Looking back: 50% of Interbrandās Top 100 Global Brands have launched NFT projects. Most of them failed to create sustained engagement or ROI.
Be smart: Brands have recognized this. Many brands moved away from Web3, disappointed by the meagre results.
The ones who stayed either backtrack (Starbucks & Nike) or start looking at the future of consumer engagement more holistically.
Start-ups building in this space have a hard time making cash, as theyāre held back by endless education sessions with brands without bringing traction on their platforms.
They now have to rethink their business models or focus on a more crypto-native audience, where engagement is higher.
The big picture: NFTs will continue to play a role for specific use-cases, but theyāll be a small puzzle piece in a broader mix of technologies. Brands will start focusing on:
Solving business problems
Creating value for consumers
Generating ROI
This will involve blockchain technology, virtual immersive experiences, generative AI, data, and other emerging technologies.
Punchline: NFTs didnāt work for brands. As we're entering a new phase of Web3 maturity, āWeb3 for consumer brandsā is being rethought and will require a more more holistic approach.
Telegram Goes Crypto š±Ā
Telegram is letting advertisers purchase ads in crypto and kicking 50% of the revenue back to channel owners, creating a ācircular advertising economyā. Link
The TON Foundation, a separate entity building its layer 1 blockchain and Toncoin, hopes to attract +500M users by 2028.
Zooming in: Telegram's payment system allows users to buy ads with Toncoin and target specific channels.
Why it matters: With the potential to reach billions of users, Telegramās model could significantly influence consumer behavior and brand strategies, promoting wider acceptance and use of cryptocurrencies in everyday commerce.
More on Web3:
š Crypto & Macro
The Rise of Memecoins š¶
Everyone in the space is talking about Memecoins.
Zooming in: Memecoins are cutely designed cryptocurrencies that form around and are hyped by communities.
How it works: Whatās special about $DEGEN, and other community coins on Farcaster, like $HIGHER, and Zoraās new fan favorite $ENJOY is that financial incentivisation is aligned with community values.
Why it matters: To outsiders, Memecoins might appear as a fad or just pure gambling. But thatās just half of the truth. Theyāre part of a bigger trend of shifting power back to consumers.
Punchline: Memecoins make us rethink how crypto tips and trades could redefine online community interaction, content creation, and the very essence of what constitutes money in the digital age.
Funding is backš
Crypto VC funding saw a positive shift in Q1 2024, breaking a two-year slump:
Early-stage volume and deal count increased 73% and 53% QoQ. LinkĀ
Crypto-focused venture firms dominated the investments, with Andreessen Horowitz Crypto, OKX Ventures, Multicoin Capital, Paradigm, and Polychain leading the way.
In March alone, over $1.1BN was invested across 180 investments, with a focus on infrastructure and decentralized finance (DeFi) projects. Link
Punchline: Investor sentiment is back, in the hopes of allocating their capital before the real bull market starts.
More on Crypto:
Two of the most highly anticipated token drops happened this week with Ethena and Wormhole. Link
Thailandās largest crypto exchange, Bitkub, plans a 2025 IPO to compete in global market. Link
Argentina rolls out mandatory registration for crypto platforms. Link
Decentralized exchange activity in March was very high. Link
Stablecoin supply hits new high. Link
š§ AI + Metaverse
š° Money Moves
IoTeX: The modular infrastructure for DePIN projects has raised $50M.
Xion: Web3 infrastructure firm secures $25M with Animoca Brands participating. Link
Agora: Stablecoin issuer raises $12M seed round to develop blockchain-based payments, with Dragonfly leading. Link
Paradigm is reported to be looking to raise roughly $750 million to seed a new fund. Link
A16z plants to invest $30M into multiple gaming-related tech startups. Link
Thatās all for now, folks. Thank you for being part of the journey.Talk soon,
ā Marc
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