Why would a celebrity want an NFT right now?
4 Entertainment experts note 3 reasons NFTs are still the future of collectibles.
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The NFT market has contracted since the fall of 2021 as the crypto market crashed.
Celebrities who use cryptocurrencies have become the subject of public anger as the projects they support have failed.
Industry experts say that the verification and usability make Celebrity NFTs a worthwhile investment opportunity.
As crypto markets tank, everyone from late night hosts to South Park is trolling celebrities like Matt Damon, who has starred in commercials for cryptocurrency companies.
NFTs, or non-fungible tokens created by celebrities, have also received backlash from the general public, and for good reason. Several major celebrity-approved NFT collections have tanked in value, leaving investors feeling short-handed and disillusioned.
Youtuber Logan Paul has a . supported nft collection It has lost over 77% since its launch. Bore Bunny NFT Archive is Backed by Floyd Mayweather Guilty Being a scam that stole over $21 million from investors. Renowned entrepreneur Tai Lopez’s NFT Collection – where he promised NFT buyers a member-exclusive hotel, restaurant and club – saw its token fail and left many, such as Youtuber Coffeezilla, wondering whether He will be able to follow through on his commitment to buy. He promised NFT investors several entertainment venues.
But despite their recent problems, many in the entertainment industry still see NFTs as a strong investment opportunity for celebrities and fans. Insider spoke to four entertainment experts who revealed three reasons why celebrity NFTs are the future of the collectibles market.
The most obvious reason to buy a celebrity NFT is to support an artist’s career.
Fred Coates, manager of rapper and crypto enthusiast Jussie J, told Insider, “For low-end artists who are just starting out, NFT projects help smaller artists monetize and market themselves with non-traditional music partners. Will do.” Insider.
The best example of this is Mike Winkelmann, better known as Beeple. Beeple has been an active digital producer since 2007. His best-selling artwork of all time was $100 before the NFT boom, but his popularity and wealth grew once he started making NFTs. These benefits were passed on to early fans, who saw the value of their Beeple collectibles increase following its now-iconic $69 million NFT sale Everyday in 2021.
Verification and Exposure
Lee Trink, CEO of e-sports team FaZe Clan and former chairman of EMI Music, said the authentication that provides NFTs — a digital stamp on a blockchain — will be key to combating the autograph industry’s problem with fraud. According to the autograph authentication service PSA/DNA, up to 50% of the autographs they verify turned out to be fake.
Trink also said that NFTs give collectors the ability to display their collectibles to a larger audience. “People can look into a public wallet and see what kind of collector you are. Right now, people have incredible physical art collections, but that’s only what people see when they walk into their house. To own a piece of art, a lot more people are able to see it. As we enter a more digital society, digital assets matter more,” Trink said.
While most people may think of NFTs as an online-only asset, NFTs are beginning to become the key to real-world experiences – or, in industry parlance, the utility they provide.
Startups such as Royale, which raised $55 million from venture capital firm Andreessen Horowitz, offer fans the ability to purchase NFTs of songs from artists such as the Chainsmokers or Nas, and in return receive a percentage of royalties from the songs.
Thomas Fiss, vice president of OneOff – a Celebrity NFT platform backed by musician Quincy Jones – said that celebrities can also provide NFT fans with authenticated connections to their favorite artists. VIP access, access to token-gated merchandise, or opportunities to listen to unreleased music give fans a jump on the ability to “strengthen their connection” to an artist, he said.
The ability to gain access to special events has recently gone hand in hand with NFT collections, even if they are unrelated to celebrities. Bored Ape Yacht Club, the most prominent NFT collection, is known for providing access to special events for its NFTs.
Last weekend, VaynerMedia’s celebrity entrepreneur Gary Vaynerchuk threw a Web3 convention, VyCon, accessible only to those who had organized one of his “vfriends” NFTs.
Mike Boyd, Head of Music Strategy at VaynerMedia, told Insider the importance of exclusive community-based experiences involving Celebrity NFTs.
“The value of a celebrity utility-based NFT project is directly related to the amount of people who want to exercise any option that is given to them through ownership of the token,” Boyd said.
Live meetups, private group chats, and NFT conferences help maintain the longevity of NFT projects, and the value of the token increases when celebrities themselves engage with their NFT community.