📰 | Context
A mere buzzword?
In 2022, buzzwords like Web3 and NFT have taken center stage in the tech world and everyday conversations. Silicon Valley leaders including the likes of Elon Musk and Jack Dorsey have become major proponents of the emerging trend, further igniting a worldwide interest in the future prospects and applications involving innovative technology.
Starting last year, the mainstream entertainment industry stood out as the new player to enter the Web3 space. While a handful of the initial projects either driven by famous actors and pop stars or entertainment businesses minting various forms of NFT collectibles based on IP-derived content and digital goods managed to achieve a hefty sales revenue immediately following the drop of their respective NFT collectibles, the vast majority of others that joined failed to replicate the same kind of success. In fact, the rare yet well-publicized cases of instant success led to waves of indiscriminate issuance of copycats and scams, which in turn, pushed out the fans and brought in speculators abusing the market in hope of quick profits. As a result, we are currently seeing a bear market trend in the NFT space.
A worthy hype
However, NFT is not merely a buzzword and still stands as a unique technology and medium that could transform the way entertainment is experienced, depending on how it’s done. A big component of success for Web3 entertainment businesses depends on onboarding the Web2-native fans to the new ecosystem, empowering them as stakeholders, and improving their engagement with the entertainment brands that they use every day. NFT technology, and NFT as a medium will make this possible when a practical and functional utility and real-world business can be integrated into the equation.