Pattern open: NFT holders decide on IP ceiling

Why is Yuga Labs worth $4 billion?

I am a player who knows a little about NFT fur, and NFTs who can be named have participated in most of them. I have held series such as BAYC, Azuki, Doodles, CoolCats, Mfers, etc.; I used to be an author in the field of entertainment and interviewed many IP incubations. A business related to operations; I am also a person who likes to collect a little modern art and fashion.

When NFT appeared, I was quickly fascinated by its rich and extensive consumption attributes, investment attributes, collection attributes, and trend attributes. About what NFT is, why it has become a trend, and why I must pay attention, from the identity of a player, I have some opinions of my own, which I believe will be somewhat different from the existing interpretations in the market.

Talk about NFT from an IP perspective

The focus of recent industry traffic is undoubtedly BAYC and its parent company Yuga Labs. On March 12, when I saw Yuga Labs acquire the Crypto Punks and Meebits series from Larva Labs, I lamented the pattern of Yuga Labs on Twitter. , In this acquisition story, Larva Labs is more like a top-level IP incubation factory, but Yuga Labs is not only its own but also an enabling IP operation platform, the former is like Pixar and the latter is Disney.

Pattern open: NFT holders decide on IP ceiling

The follow-up Yuga Labs also further demonstrated its vision as the first NFT IP platform, including describing its vision as “bridging the gap between culture and web3” in the new deck, and narrating its commitment to breaking the boundaries of the “Metaverse” , plans to further build new IPs, acquire old IPs, and even released a short video of their NFT family Metaverse “the Otherside”.

Pattern open: NFT holders decide on IP ceiling

Pattern open: NFT holders decide on IP ceiling

There are also other media describing Yuga Labs with the positioning of “Disney in the web3 era”, so is it too exaggerated to use a company that sells small pictures to benchmark the century-old entertainment giant Disney? I think not at all.

My starting point is not the fully released market value of APE tokens exceeding 10 billion US dollars, nor is it its just completed valuation of 4 billion US dollars, a16z led the investment, Adidas Ventures, Animoca Brands, Samsung, Google Ventures, etc. participated in the $450 million financing , but the changes and laws of IP incubation operations and copyright commercialization over the past century .

A few years ago, the founder of an IP company said something to me, and I deeply agreed. The core issue that IP companies are always thinking about is “low cost, high traffic”. How to obtain higher traffic at a lower cost. Content, channels, and marketing methods are all formulated and changed based on this core.

A hundred years ago, the wide-screen sound film was the new media. In 1928, Disney launched the first sound animation “Steamboat Willie” in history. Film and television were a new content carrier in that era, and the Mickey family was the first to rise in this channel. A batch of IP has also become the originator IP in the hearts of global moviegoers.

Pattern open: NFT holders decide on IP ceiling

In the past 100 years, Disney has also encountered many bottlenecks in growth, and has always continued to introduce new IP and expand new distribution channels to maintain its leading position, including the development of entertainment program production, theme parks, toys, books, games, media networks and other businesses, mergers and acquisitions. Pixar, Marvel, 21st Century Fox, and vigorously developed the streaming media business Disney+ during the epidemic, and even recently announced that they will enter the Metaverse.

But I want to talk more about Sanrio, which was established in 1974, which is the favorite example of all IP people. No one does not know its most well-known IP HelloKitty. The amazing thing is that HelloKitty does not have any film and television works, and has not even carried out any advertising, but Sanrio has established the earliest full set of IP authorization and management chain. In addition to the special category of tobacco and alcohol, Sanrio has jointly authorized copyrights in almost all fields, including clothing, accessories, daily chemicals, automobiles, offline shops, etc.

Pattern open: NFT holders decide on IP ceiling

In the context of the rapid development of commodity markets and international trade in the second half of the 20th century, I believe that you can hardly escape buying a thing or two with the HelloKitty family printed on it. When you drink water with a HelloKitty water bottle and write with a HelloKitty pencil, you are also becoming a dissemination node of this IP while consuming.

Another interesting example is Line Friends. LINE is a social application developed by NHN Japan, a Japanese subsidiary of the Korean Internet group NHN. With the popularity of instant messaging software, LINE FRIENDS has also become an independent brand, operating character IP, and its business includes games, animation, theme parks, coffee shops, etc. The revenue in 2019 exceeded 1.2 billion yuan.

Pattern open: NFT holders decide on IP ceiling

Similar examples include Kakao Friends, Changcao Yan Tuanzi (Twelve Buildings Culture) that has become popular in China’s WeChat ecological emoji package, and NFT series that have recently been released, once accompanied by the production of mainstream Web2 community products such as Douban and Weibo. The cold rabbit is well known to this generation of Internet users because of the content of the cold joke.

Pattern open: NFT holders decide on IP ceiling

What I want to say is that, from the three examples of film and television works, daily necessities, and emoticons, we can see that with the changes in the media, the cycle of cultivating IP is shortened, the chain of commercialization is also shortening, and the communication mode is more Light, the touch efficiency is a geometric increase. At the same time, the design style and presentation of IP are constantly iterating.

This is like the evolutionary process of print media, Internet media, and social media. The methods and media for obtaining information and attention are changing. In each era, who and what is popular is accidental and irreproducible, but it is indeed the era. The only choice.

Unlimited potential of BAYC and Yuga Labs

So when I saw NFTs, I knew it was going to be a real, new revolution.

As an IP, the speed of NFT dissemination and cognition is truly “on the rocket”. In August 2021, NBA superstar Curry purchased a BAYC and replaced it with a Twitter avatar, which is not only the headline news in the Crypto industry , and also the first hot search on Twitter and the first hot search on Douyin that day. Recently, when I returned to my hometown, a relative (an ordinary person in an eighth-tier city, who had no idea what blockchain was) looked at my WeChat profile picture and said, are you the same monkey as Curry?

Pattern open: NFT holders decide on IP ceiling

Since then, Dallas Mavericks owner Mark Cuban, top 100 DJs Steve Aoki, The Chainsmokers, Marshmello, Mike Shinoda of Linkin Park, singer Post Malone, rap superstar Snoop Dogg, football star Neymar, socialite Paris Hilton, Justin Bieber, Eminem and other superstars (Probably only one-tenth of the current star holders) have purchased the BAYC series and changed their avatars.

Twitter has 200 million daily active users, Instagram has 500 million daily active users, and WeChat has 1 billion daily active users. The above-mentioned celebrity V has tens of millions of fans at every turn. And these communication channels are not only not bought, but also KOLs spontaneously spend a lot of money and participate in the construction of the community. If NFT is not the carrier of the strongest IP in this era, what is?

Some people will point out that these influences cannot be realized through authorization to the pockets of BAYC creator Yuga Labs, or that there are hidden dangers in the decentralized open copyright of NFTs . The world of 0 knows nothing. 

As of January 2021, Hello Kitty’s 47-year-old revenue is $84.5 billion, and it is the second-highest-grossing IP in global history (the first is Pokémon, which was born in 1996, generating $100 billion in revenue).

Pattern open: NFT holders decide on IP ceiling

BAYC was born less than a year ago, the total transaction volume has exceeded 1.5 billion US dollars, MAYC’s 7-month transaction volume has exceeded 1 billion US dollars, the Crypto Punk series total transaction volume has reached 2.7 billion US dollars, the current price of APE coin is around 12 US dollars, the token Market value of $12 billion. And those numbers are far from covering its commercial value.

But what is more important is not these numbers, but what BAYC brings to holders. 

Copyright System in the Web3 Era

Curry bought a BAYC with 55 ETH in August 2021, and bought a BAKC with 5.7 ETH, which is about $198,000 at the ETH price at that time.

Since then, Curry has been on the global social media hot search list and is regarded as a leader by the Web3 world. On September 8, he became the global ambassador and shareholder of the mainstream encrypted trading platform FTX; on December 22, he and FTX.US Released Stephen Curry’s “2974” series of NFTs, with sales of $1.46 million, all for charity; on December 24, he released 5 “Genesis Curry Flow” sneaker series NFTs on the Polygon network, with total sales on the day over $3 million.

Last week, ApeCoin (APE), a token associated with the Bored Ape Yacht Club (BYAC) NFT ecosystem, was officially launched. If you hold Bored Ape and Kennel Club at the same time, you can receive 10,950 pieces. If the airdrop received by Curry is sold today, it will be worth $130,000. Today, the floor price of the BAYC series is 101 ETH, and the floor price of BAKC is 8 ETH, which is already 2 times the purchase price of Curry.

That is to say, in the six months that Curry held Monkey, not only did he get nearly three times the return on investment, but he also jumped from a sports star to a KOL in a new field. The era of the Metaverse is far from here, but we have already felt it. How can we achieve fame and fortune in the real world through virtual digital IP? Is there anything more “future” than this? 

What is even more remarkable is the “decentralized copyright” that subverts the traditional authorization model. Let’s see what the decentralization of copyright will bring.

First of all, regarding the copyright definition of NFT, it is recommended to read this article: NFT’s CC0 Fog (https://www.odaily.news/post/5177104), I won’t do too much here. Let’s just say that YugaLabs initially formulated a very clear statement, affirming that you “own NFT” and “own the underlying work of NFT, the boring ape”, and you can use the NFT you own for commercial use.

Pattern open: NFT holders decide on IP ceiling

This is also one of the hottest focuses of Yuga Labs Crypto’s acquisition of Punks and Meebits, because after the acquisition, they plan to grant all the commercial copyrights of the CryptoPunks and Meebits series to their respective owners. It has been criticized for not opening copyrights.

So what are the consequences of allowing NFT owners to commercialize such a powerful IP? Let me just cite a few examples:

1. In December last year, Adidas co-branded Bored Ape Yacht Club to issue adidas Originals Into The Metaverse NFT, with sales of 5,924 ETH (approximately $23 million) and a turnover of nearly $100 million so far.

2. Universal Music Group purchased Bored Ape Yacht Club #5537 this month to form Kingship’s virtual band together with the NFT it purchased earlier. Three members of Kingship are from Bored Ape Yacht Club and the other is from Mutant Ape Yacht Club.

3. Tomorrowland, the world’s top electronic music festival, announced that NFT artist Ape Rave Club will premiere on the main stage on July 24, becoming the protagonist of this year’s music festival. Ape Rave Club is a digital artist from the Bored Ape Yacht Club NFT series that plans to release original crypto-native music through the NFT platform.

Pattern open: NFT holders decide on IP ceiling

When I interviewed the founding team of POPMART a few years ago, I once asked them if they would make content based on Molly, and they immediately answered no, and told me that Molly could be anyone, any profession, any character, and they wouldn’t do anything without effort. The content to please, limit her as a platform IP. As time went on, it immediately made sense to me.

In the NFT universe, I saw a new ceiling. The world’s top clothing brands, entertainment giants, and big-name stars are sparing no effort to use their decades of accumulated resources to spread BAYC and give it top-level content from their own perspective. , match the best channel.

This is the power of openness, the copyright system of the Web3 world in my eyes – the holding community determines the height of the IP, and the community here can be people, enterprises, or Dao organizations.

Consumer Goods, Art, Luxury 

Finally, I want to talk about some subjective experience.

NFT was born in a very interesting era. In addition to the grand narrative of subverting the business world of IP and copyright, when someone asks me what it is, I will say: it is a work of art and not only a work of art, it is a consumer product and not only a Consumer goods, it is a luxury and not only a luxury (here I refer to the narrow Avatar-like NFT). 

In fact, the concept of the definition of the above concept itself is blurring the boundary.

Many practitioners use Andy Worhal and Pop Art as an analogy when explaining to “newcomers outside the circle” why a small, rough picture NFT that doesn’t seem to have much artistic skills is invaluable. It is indeed appropriate.

Pop Art is art that draws styles and subjects from popular culture: TV, Coca-Cola, comics, cans, dollars, printed wallpaper, initially, many traditional bigwigs were uncomfortable with such art because they rejected commercial culture and commercialization of art , that it would threaten the very existence of modernism and “high culture”. The trend of rebellion, dissolving authority, and facing the commercial society head-on is irreversible and has actually happened.

Pattern open: NFT holders decide on IP ceiling

NFT is the more extreme widening, marketization, and commercialization of modern art. You can despise it and look down on it, but you can’t stop it from happening. 

A more interesting example is the trend that has lasted for several years, street-oriented, trendy luxury. The design of luxury goods has gone down the altar, slogans are printed on clothes, illogical oversize, subcultures that have lost their origins, joint names with street fashion brands, and social media influencers are used as brand ambassadors…

Pattern open: NFT holders decide on IP ceiling

Behind this phenomenon is the increase in the number of the global middle class – luxury goods are no longer the so-called symbols of wealth and blue blood status, but more about life attitudes and choices that show individuality. More and more people have sufficient purchasing power. If luxury goods want to continue to occupy a leading position in the fashion market, they must adapt to the development and changes of the times and open up a more popular and younger market.

When some “new rich people” ask me why I want to buy NFTs, I will say this is Web3’s RICHARD MILLE more often than telling him that BAYC is Web3’s Mickey. 

When some people say that luxury goods must be timeless, century-old classic brands, RICHARD MILLE is the best example. And the application of materials in watches, and RICHARD MILLE was first known by the brand friends of the elites in various fields (especially the sports industry, including Federer, etc.) Even millions of dollars, it still attracts rich people, especially celebrities and internet celebrities.

Pattern open: NFT holders decide on IP ceiling

Is this example highly similar to BAYC? It can be said that in today’s luxury goods, “community attributes” (who is bringing the goods) have gradually replaced “blood attributes”, and when you wear Richard Mille, you have to “inadvertently” roll up your sleeves to show people , we are not like Federer who can always wave his arms in the spotlight of the stadium, it is obvious and easier to change the BAYC avatar, and the fluidity is better.

Therefore, back to why brands are issuing NFTs and everyone is buying NFTs: giants are afraid of being outdated and defeated by new things; new rich people who profit from Web3 need to show their social identity; Web1, Web2 old rich people need a dialogue The entry point of the new generation. 

Two days ago, a Web3 investor talked to me about a Crypto-related project that a Web2 team had re-founded. When they saw that their deck team introduced monkeys, they said:

Pattern open: NFT holders decide on IP ceiling

I can’t help but sigh that this is the fabled Web3 identity. 

Some media have published content that attracts attention with the title of “betting stones” for young people. It is true that we are always comparing the new world with the old reference, but the development of the Internet and the business world is the most difficult thing to “seek the sword”. If you want to understand it, then you should understand it first.

Of course, the floor price of more than 100 ETH in BAYC today is unattainable for most people, and BAYC is only 10,000 after all. But there are still more fresh and interesting series being produced, and the holders themselves also determine the ceiling of this IP. The new story has just begun, and more narrators are required to participate in it. After participating, you will have unexpected benefits.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/pattern-open-nft-holders-decide-on-ip-ceiling/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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