Digital objects have long been treasured. An exhilarating moment during a Twitch stream. Memes that define an era in time. Iconic selfies. The list goes on and on.
NFTs are digital objects made ownable. User-generated content -- whether it be art, music, or another medium -- can be explicitly owned. Until now, user-generating content has primarily created value for large tech corporations. The users themselves became the product. With NFTs, it’s possible for this value to flow to users directly.
In 2021, however, the NFT revolution centered around investing. Investment became the cornerstone as most NFTs centered around art and collectibles. Conversations quickly moved from developing a long-term thesis to telegram groups dedicated to NFT flipping. A small group of NFT influencers began gaining power and influence over these niche markets. NFTs regularly sold for thousands, if not millions of dollars. This was not how I hoped the story would unfold. There’s a place for investment in NFTs. But I firmly believe NFTs should focus on consumption to realize their potential.
What does this mean?
A few years ago it was common to hear the phrase, “we’re still waiting for crypto’s killer app.”
Crypto markets weren’t quite ready for mainstream attention. The past five years of crypto were heavily focused on financial infrastructure and technological foundations.
But we’ve now experienced early product-market fit in DeFi, an explosion of projects like NBA Topshot, Axie Infinity, Cryptopunks and onboarded the first ~100M users to crypto. The next 100M crypto users will be driven by consumer protocols, DAOs and applications.
First, the pandemic brought economic activity to a screeching halt. Then the Fed turned on the money printing machine, and the stonk casino went wild. Reddit investors brought Gamestop back to life, bitcoin soared past $50K, and a piece of digital art sold for $69M.
You can’t make this stuff up.
Fast forward ten years. The so-called “baby” Gen Z investors will be entering their 30s. With an expected $70T of wealth by 2040, this is the generation to start and finish their investing careers online. Today, gen Z-ers spend 10+ hours online. This little box you’re staring at is where they live, talk, spend, play and more.