NFT

NFT Branding: 101

The cat is out of the bag on the technical side of NFTs (or should I say Crypto-Kitty?) Every day, new services pop up that make it easy to drag, drop and mint your own NFTs. The barrier to entry to create your own digital items is low. And this has led to a flood of criticism that NFTs are a bubble. Who wants to buy all of this crap art?

But just because it's easy, doesn't mean it's easy to win in this space.

Take T-shirts. In the 1950s, if you wanted to sell t-shirts, you had to own or have connections to a factory that physically made them. Then there was shipping. Then there was distribution. Etc. Flash forward to 2022, and t-shirts have been "drag-and-droppified." Technology has eliminated the barrier and the middlemen. Does this mean that t-shirts are a bubble? Does this mean that people will no longer buy t-shirts just because now everyone can make them? No, they'll buy the shirts they want.

People buy t-shirts that fit their style, make them feel cool or fashionable or have some personal meaning to them. T-shirts are a form of self-expression. People will always need to express themselves and differentiate themselves from the people around them. Brands and creators that can use t-shirts as a vehicle to transport their own worldview and ethos, will sell. Generic knock offs., or random t's uploaded to Amazon will get ignored. As in all things; T-shirts to NFTs, it's survival of the coolest. Survival of who can create the most meaning and emotional connection.

NFTs aren't cheesy illustrations of animals. They are units of brand identity. They are signal boosters. Just because you can technically make an NFT, does not mean you're going to make it. The digital items that thrive are just like the t-shirts, lunch boxes, branded candy bars, hot sneakers and cool cars that people keep buying. The creators that imbue their NFTs with meaning and manage to mint culture, will make it. All others will fade away.

Maybe in 2017, the superstars who moved the needle in the space were the coders who technically enabled non-fungible tokens to be created. But in 2022 and beyond, the technical abilities have spread out and are no longer the differentiator. The value and importance of digital items will be in the hands of brands that can put their cultural cool into digital amber, preserving authentic meaning on the blockchain.

There will be low hanging fruit as always. A shallow, profit printing way to get involved at some layer. Think: world-beating IPs like the Disneys, the Marvels, and the imagery that you can put on a pair of underwear and socks and manage to sell out on autopilot.

There will be newcomers, like Bored Apes, who seemingly come out of nowhere, capture the cultural zeitgeist and manage to start up a legacy from ground zero.

There will be niches in every category you can imagine. Artists and musicians who connect with the heart and soul of their fans. This will create a symbiotic relationship where both sides will contribute and benefit from the increased exposure of the creators as they push further into culture.

Those who know branding, will win.

It could be personal brands, legacy brands or new cultural phenomenon brands.

But the ones who rest on their digital laurels at merely being able to technically show up at the NFT table, or who copy and paste derivative ideas onto the blockchain will be ignored. In our attention culture, we crave meaning, story and values. We look for things to cheer for. And we want easy ways to express our values. This is what branding is an onramp for. Without branding and meaning, NFTs are hollow vessels. A collection of directionless pixels taking up space on the vast sea of the distributed web.

Brands with sharp POVs and clearly communicated world views will have lasting power. Just because the medium of communication has changed, doesn't alter the basic rules of branding that have proved successful at each iteration of culture.

Brand your project or be forgotten.

Azuki NFT Releases First Fractionalized NFT

We have hit a wall with NFTs. The word is out. You either love or hate them. But whichever side you fall on, you feel like you know what they are about. And it's either for you or not. Of course those who are writing off NFTs already, are sounding a lot like the people who dismissed the Internet as a fad back in the 1990s.

Yet, even as a convert to NFTs and the potential of web3, I can understand where the hate is coming from. It's like when the Internet only had a few web pages and you had to get access by getting "minutes" on a physical CD. The infrastructure of web3 doesn't exist yet. It forces you to use all of your powers of imagination as to what the space could look like once that infrastructure is built out. Leaving value to the power of imagination alone looks an awful lot like speculation.

But I just ask myself a simple question: Will people's lives become more digital in the future? Or will people start abandoning technology. Will the Internet become the fad that it was predicted to be in the 1990s? If you think people's lives will be more digital than they are today, then that is a vote of confidence for web3.

But if web 3.0 is the destination for mainstream adoption, we will start needing more than imagination and speculation to get us there. This means we need innovation. We don't need cryptopunks version 47. We don't need 394 different flavors of monkeys. We need honest innovation that unlocks the next chapters of this story. We need NFT projects that make people go "oh, I never thought of that." We need NFT projects that move the needle and start filling in the wild imagination of early adopters.

This brings me to a new wave of NFT projects that are standing out. Projects like Azuki NFT, an anime inspired PFP project that comes with a blue chip pedigree and an ambitious roadmap to match. Azuki started out as a series of anime inspired characters and a promise for future metaverse integration. Its members have worked for Marvel and Disney before, and what they are looking to accomplish is directly related to that path. Instead of designing characters that raise the stock prices for Disney shareholders, these creators are looking to mint original IP that will fund their own vision that they will be able to control and profit for. No longer putting their hard labor in for the House of Mouse, they are out to make an impact for themselves. This is the promise of web3. Digital ownership that many can participate and profit in.

The Azuki NFTs quickly shot to the top of the NFT rankings and their floor price quickly vaulted out of reach for most. Which makes their recent offering intriguing. They have just "fractionalized" one of their IP's core characters, a bean farmer named Bobu, and offered those fractions at an affordable mint price for new members to join the community. There were 50,000 such fractions minted and they went fast.

Azuki is promising that the Bobu fractional NFTs will be an experiment in project governance. Effectively creating a DAO based around one of the characters in their world. It's like if JK Rowling suddenly decided that Hagrid was going to be owned by the fans and offered shares of ownership in the character. Holders of the fractional Bobu NFT will be able to vote in the community to help decide the direction of the character. The projects roadmap lists ambitions to create animations, games and even films around the Azuki universe, and Bobu's fate will be fan controlled. This is having a stake in the game. And as word of the project moves forward and sales of the fraction continue to rise, they will keep generating more funding that goes towards fulfilling their future ambitions. It's a brilliant marketing move that has brought more attention to the Azuki brand, and has also lived the spirit of web3 by giving those who missed the initial wave an affordable entry point into the project. It's a show of innovation that could be adopted by other out of reach NFT project like Bored Apes, should they look for ways to acquire new members in a future wave of the project.

It's still early innings for these projects, but every time one project decides to try something new, the whole space can learn and benefit from the attempt. And hopefully, we will see more of these properties taking risks and trying to add new innovations to what they are offering. One of these days, someone will add a new use case that will serve as the springboard to mass adoption of web3. We are still playing in tech savvy, early adopter spaces. But with every new attempt, the mainstream gets a little closer. Innovation is the only path toward opening the floodgates. Because everyone who already cares about NFTs is here and content. It's the 99% that need to get excited about this space, and so far, they haven't seen anything that gives them enough FOMO to join. Yet.

A DAO is Trying to Buy the Denver Broncos

As we rocket through 2022, the web3 and NFT space continues to evolve at warp speed.

Grabbing headlines today, is the latest DAO with an ambitious moon shot set out before it. The aptly titled, BuyTheBroncosDAO is attempting to do exactly what its name pitches, become the first DAO to buy a major sports franchise, in this case the NFL's Denver Broncos. The latest estimate on the value of the franchise is sitting at around 4 billion dollars.


BuyTheBroncosDAO is the latest in pithily titled and boundlessly ambitious DAOs set out to do something extraordinary and culture changing. Sports teams have famously been publicly owned before, like the Green Bay Packers, but this would mark the first time that a professional sports team went fully web3 native, should the DAO succeed in their mission.

Part of the DAO's team include former blue chip tech lawyers and entrepreneurs with solid looking track records. The team is doxxed and their reputations seem legit and built for a project along these lines. The team has also smartly wrangled some political players into the early PR for the project, with Colorado governor Jared Polis being quoted heavily by business blogs and coverage. Polis comes out entirely in favor of the DAO succeeding, which looks to serve his state's political agenda of becoming a crypto first state. This is PR where everyone can win.

While web3 famously generates insane amounts of capital, a funding aim of 4 billion dollars is still a highly ambitious target. This is acknowledged by the founders of the DAO, unlike previous DAOs which have set an all or nothing approach to their financial goals. The founders of BuyTheBroncosDAO have lower tiered contingency plans that include raising only a portion of the 4 billion dollar franchise valuation, and then partnering with traditional investors to round out the purchase. It appears they are willing to stick with the project while having a firm grounding in reality.

The founders have also undertook a bit of financial engineering, which has caused previous DAO attempts to stumble when it comes to regulation. Instead of creating a separate LLC business entity for the DAO, which would be subject to high taxation and regulation, the founders are looking to establish a co-operative, much like how the outdoor brand REI is structured. This would give governance to the members of the DAO, while avoiding the scrutiny of higher taxation and regulation. Again, it seems the project has their financial and legal ducks in a row as they head into their opening sales.

The project has a launch target set for early March, and are currently hitting the PR trail hard and trying to drum up support for the ambitious cause.

We are still so early in the history of web3 and DAOs specifically. We haven't even really stepped onto the ambitious roadmaps they have set out. Only time will tell if this is a feasible and revolutionary way to organize group efforts and funding. On paper, it is all very sexy and exciting. Of course, once the first DAO succeeds, and changes history, it will only accelerate the momentum of the movement to push the boundaries further.

I can't help but think this whole group financial thinking was triggered by the success of reddit's Wall Street Bets and their single minding mooning of the Game Stop stock. This episode proved that even the most money loaded institutions are actually vulnerable to collective passion and pooled resources. This is the promise of web3, NFTs and DAOs. Right now we are seeing a million archers pulling back their bows with hopes of revolution. With hopes of re-writing the tired stories of a world that has forever been dominated by the 1 percenters. If these bands of rebel archers can band together and focus their passion and resources, they have a chance to chip away at the control of the old world and old money.

This is an exciting promise.

This is what deciding to invest in something like BuyTheBroncosDAO represents. Before this time, there was never a chance for someone off the street, with no connections and no qualifications to be a part of bidding on a major sports franchise. If they succeed in achieving the impossible, what else previously considered untouchable will fall next?

Hipster Velociraptor NFTs

I’ve been studying and playing around with NFTs and web3 for a little while now, and now I’m ready to jump into the space as a creator. I just minted my first batch of Hipster Velociraptor NFTs over on OpenSea. You can check out the collection here.

Hipster Velociraptors are a PFP or “profile picture” project along the lines of Bored Apes and Cryptopunks. The latter have helped accelerate NFTs and crypto-art into the mainstream, as their art has sold for astronomical prices. Hipster Velociraptors are each crafted by hand on the computer. I put together the traits and accessories, and then mint each one into a unique and verifiable NFT.

While I am jumping into a newly established trend, Hipster Velociraptors are an original illustration project that I have been working on for years. I’ve struggled to find the right avenue to put them out into the world. And then I saw the emergence of NFTs and PFP art, and realized right away, that Hipster Velociraptors would work perfectly in that context.

Like all NFT and crypto-art projects recently, I do have a general “roadmap” in mind. While it hasn’t been finalized, some things I am thinking about include web comics, original content series, commissions and limited edition drops to holders. We are all so very early to this space, and the rules and best practices are literally being written every day.

Hipster Velociraptors will be my personal NFT studio to create and experiment with the form. As of this writing I have created and minted 7 unique Hipster Velociraptors. I plan to keep adding to this series. The hope is that over time, more collectors will come to discover the collection, and will be curious to look back and see what the original Hipster Velociraptors look like.

Watch this space for more updates on the project moving forward. If you are reading this, then you too, are very early.

Go pick up a Hipster Velociraptor of your own here!