How important is whitelisting for the success of NFTs?

How important is whitelisting for the success of NFTs?

Whitelisting typically means that a crypto wallet address has been pre-approved for the minting of NFTs on specific dates and times

In a typical Silicon Valley startup, you look to start with an innovative product or service and then match that to customer demand, testing out your hypothesis with an MVP (minimal viable product) before seeking to scale up the business backed by VC funds.

The VC model seemed in decline during the crypto ICO boom years in 2017/18, when an ambitious whitepaper and an impressive founding team and advisors were enough to gain token investment.

But nowadays, as the world of DeFi, the metaverse and NFTs all usher in the Web3 world, that’s certainly not enough. Projects need to have purpose and be community-led, in a real sense, in terms of both governance and tokenomics.

As Maggie Hsu, partner at top crypto VC Andreessen Horowitz pointed out regarding the nature of Web3 projects earlier this year, “It means having a strong community, not just being “community-led” or “community-first,” but also being community-owned, blurring the distinction between owner, shareholder, and user. What allows for long-term success in Web3 is a clear purpose, having an engaged and high-quality community, and matching the right organisational governance to that purpose and community.”

That being said, how does the current practice of whitelisting, allowing early pre-sale access to NFT and DAOs, square with this Web3 vision? When there is an opportunity from being lucky enough to be whitelisted to make a significant short-term profit, is that right from the longer-term view of the project.

What is whitelisting?

Before we get into the expert discussion, let’s briefly consider the focus of this article. Whitelisting was introduced in the NFT space near the end of 2021 after NFT enthusiasts identified a critical issue during the launch of new projects.

Also Read: NFTs: The good, the bad, and the future

Before the concept of whitelisting became popular, NFT projects with a lot of hype were usually ‘botted’ on the mint day by NFT whales (people who hold large amounts of crypto), leaving little to nothing for retail investors. Using trading bots allows the whales to buy the NFTs before community members have a chance to buy.

As explained in the NFT Examiner, whitelisting is when a specific crypto wallet has been approved for minting a specific NFT.

“As an example, Neo Tokyo is a project where participants have to pass a test to become eligible to mint a Neo Tokyo Identity NFT. If they solve the challenge, they are added to the whitelist, allowing the participant to mint the highly sought after NFT. Without being on the whitelist, buyers could attempt to mint the NFT, but the transaction would fail.”

In the NFT world, whitelisting typically means that a crypto wallet address has been pre-approved for the minting of NFTs on specific dates and times.

Furthermore, due to the high demand for these projects, particularly on the Ethereum blockchain, there were usually ‘gas wars’, with transaction fees reaching thousands of dollars, which was a bad look for the NFT sector and hampered user adoption.

In addition, pre-approved users on the whitelist can spread out their minting so that they are not all transacting simultaneously, avoiding a sudden spike in transaction prices caused by demand. Most new NFT projects layout their whitelisting requirements on their respective

Discord servers, with different tasks and assignments ranging from chatting to a certain level, posting fan art, promoting the project on social media platforms, etc.

In some ways, it’s an evolution of the practice of ‘bounty campaigns’ used in the days of ICOs in 2017/18 to market token offerings by offering giveaways in return for tweets and Facebook likes to help promote the coin offering.

The lure of big profits

Of course, the popularity of getting yourself invited onto an NFT or DAO whitelist isn’t just about being part of an exclusive community, to be part of a long term Web3 project; for too many people simply a chance to make a quick buck.

In his video explainer on the power of whitelisting, YouTuber ‘_DB’ points out that if you get access to a pre-sale token, it usually sells between US$10 to US$20 or even US$30, though how much can vary according to the amount of hype behind a project; with a limit in the amount of pre-sale tokens typically set between US$1,500 to US$2,000.

The new NFT drop from the High Sloth Society (HSS) of 10,000 Elite Sloths recently organised a public sale that was sold out in 29 minutes for US$1.2 Million.

Also Read: 3moji aims to transform the way NFTs are used in metaverse with its composable avatars

The High Sloth Society NFTs started their public sale at noon UTC on the 28th of April. Then on the next day, they sold another 1,000 pieces at 0.08 ETH each at their whitelisting event.

“The High Sloth Society is a group of people that are no longer interested in money but want to focus on what money cannot buy. By owning a high sloth, the users are granted the opportunity to have a direct interest in the ancient artefacts. The Korean National Treasure is just the first one,” Leon Kim, Core Contributor of HSS, said.

What’s the benefit for the community?

The purpose of whitelisting serves two core purposes. The first relates to the fact that if you are going to have any degree of success, you need to build a community around a project. Achieving this involves driving online engagement through social media.

And using a whitelist is an excellent way to do this. For the user, it’s a way of getting preferential access to a project, providing an incentive for a community to rally around a project.

“It can be a really good way to start getting people again, like talking about things on social media, retweeting, commenting, sharing pictures, all that sort of thing, because if you if you make things obvious, then you’ll get like, you’ll get some pretty good organic traction,” confirmed Ben Baldieri, Director of a Web3 tech consultancy Disintermediate Ltd.

The future for whitelisting

The whitelisting method currently dominating the NFT space is relatively new. Therefore, while it’s successfully prevented botted NFT project launches and conserving gas fees, they need to be used with the community in mind.

BigONE Chairman Anndy Lian said, “While the whitelisting practice was founded on good intentions, it has been tainted by some bad actors in the NFT space; this ranges from over-stringent requirements for being considered for a whitelist to some Discord server moderators giving out multiple whitelist spots to their family and friends.”

“I believe that commonly agreed best practices for the NFT space are the logical next step forward to ensure all participants’ safety and security in this exciting marketplace. NFTs have a lot of potential as their utility develops from collectibles to allowing fans to connect directly with artists and creators and their role to prove ownership in the metaverse and GameFi projects. But as things move quickly, we need to ensure we get the balance right in such a fast-changing technology,” Lian added.

 

Original Source: https://e27.co/how-important-is-whitelisting-for-the-success-of-nfts-20220512/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

j j j

Elon Musk changes Twitter pic to Bored Ape NFTs, experts advise thorough research on investments

Elon Musk changes Twitter pic to Bored Ape NFTs, experts advise thorough research on investments

Even as billionaire Tesla CEO Elon Musk has put up a collage picture featuring several Bored Ape nonfungible tokens (NFTs) as his Twitter profile picture, with Ape 5809 in the center, experts have advised that investments should be based on thorough research and that investors should not get swayed by the views of any one individual.

Musk’s Twitter profile picture change was followed by a tweet that said, “I dunno … seems kinda fungible.”

The NFTs featured in Musk’s profile picture are all from different artists, each with a unique design and serial number.

ApeCoin, used to vote on community decisions and other services within the popular Bored Ape Yacht Club (BAYC) ecosystem, immediately surged 20% to $17.60, data showed after the change, and was trading at $157 later in the day.

“We have seen the effect of Musk’s Twitter play on APE. This only goes on to prove once again how vulnerable cryptos are. Any currency, whether fiat or cryptos, should not get swayed by any one person, irrespective of his position or net worth. What is needed here is that the crypto community rallies together and does not buy or sell tokens basis the views of any one individual. There should be thorough research done before buying new tokens. People can make sound returns on their investments only if they invest for the long term based on their own research of the fundamentals surrounding the token,” says Aliasgar Merchant, Developer Relations Engineer at Ignite.

Shortly after Musk made the change, Michael Bouhanna, a contemporary art specialist at auction house Sotheby’s, took to Twitter to call him out for using the image. Bouhanna said he created the picture for Sotheby’s $24 million sale of 101 Bored Apes in September, which included Ape 5809.

Musk, who recently hogged the headlines for acquiring Twitter, is a crypto enthusiast and the recent move shows his apparent interest in NFTs too.

Anndy Lian, Chairman, BigONE exchange, says that Musk is trying to tell people that NFTs are kind of fungible in some ways and that one can replicate it freely, put it anywhere one wants but does not own it.

“The other thing is I do see a surge of 19% on ApeCoin when Elon changed his profile image to Bored Ape NFT. Playing the devil here. I would really hope to see a token plunges next time when Elon tweets about it. This would an interesting social experiment,” Lian adds.

Raj Kapoor, chief Advisor at aCryptoverse, a blockchain and crypto advisory firm, says Musk has a significant influence over the cryptocurrency market and this was clearly on display by this move.

“If we also observe, almost 10 Bored Apes had been sold since Musk revised his Twitter profile photo, and the floor price had raised by 10 Eth. I would call this the Musk Effect,” Kapoor says.

NFTs are non-interchangeable units of data stored on a blockchain that can be sold and traded and are often associated with digital files such as photos, videos, and audio.

BAYC NFTs are highly desired among NFT collectors. The recent NFT project launch by Yuga Labs, makers of the Bored Ape NFT, caused gas fees on Ethereum to rise by thousands of dollars.

Several celebrities have or had put up Bored Ape pictures as Twitter profile pictures in recent times. Basketball star Stephen Curry and musician Steve Aoki are among the celebrities who have done it.

Musk received flak from the NFT community, with some saying Elon Musk made a collage of “screenshotted bored apes his profile picture to troll NFT owners.” Others believe Musk is trying to signal his intention to get into the NFT space.

 

 

 

Original Source: https://blockchainassetreview.com/elon-musk-changes-twitter-pic-to-bored-ape-nfts-experts-advise-thorough-research-on-investments/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

j j j

Are NFTs and celebrities a match made in heaven?

Are NFTs and celebrities a match made in heaven?

It’s important to honour the relationship between fans and celebrities if NFTs are going to make a real contribution to both.

Celebrities, from Hollywood actors to top musicians are embracing NFTs right now as the next big thing to connect with fans and take back control from industry moguls.

Grabbing the attention of social media recently on US TV ‘Tonight Show’ clip of Paris Hilton and Jimmy Fallon discussing their Bored Ape Yacht Club NFTs, joining other celebs including Reese Witherspoon to musician Eminem who’ve taken a shine to NFTs.

Certainly, NFTs seem to be gaining traction and possibly altering the music industry. After famous rapper Snoop Dogg recently bought Death Row Records to turn it into an NFT label, the musician underlined this point about their disruptive power, “If anything is constant, it’s that the music industry will always be changing. Blockchain tech has the power to change everything again and tip the table in favour of the artists and the fans.”

But there’s also controversy about how aspects of the current boom in NFT sales from leading figures within the crypto community. Last week in Time magazine Ethereum founder Vitalik Buterin focused his wrath on the Bored Ape Yacht Club NFTs. Rather than his vision of Ethereum as the launchpad for everything from a fairer voting system to urban planning, he’s worried it’s become a plaything of the celeb obsessed world.

“The peril is you have these US$3 million monkeys, and it becomes a different kind of gambling,” he told Time. “One silver lining of the situation in the last three weeks is that it has reminded a lot of people in the crypto space that ultimately the goal of crypto is not to play games with million-dollar pictures of monkeys, it’s to do things that accomplish meaningful effects in the real world,” Buterin added.

From a creative perspective, what do NFTs bring to the world of artists and fans, that’s about establishing a real connection, that does deliver those “meaningful effects”?

The growth of NFTs

The news in late 2021 that Coinbase is entering the NFT market added further momentum, coupled with FTX launching a Solana-based NFT marketplace.

While the current dominant NFT marketplace OpenSea has seen up to 80,000 transactions a day its browser-based wallet is not super easy to use at times, and there have been security issues that have put people off.

That said in August 2021, OpenSea exceeded US$1 billion in gross market volume year-to-date for the first time. By late 2021, it had grown so much that it processed US$3.2 billion in volume in the month of December alone.

In 2022 competition for the NFT market hotted up when LooksRare launched, offering their minted platform tokens, $LOOKS, as airdrops to OpenSea users based on their spending on the platform.

Certainly, the Coinbase emphasis on usability, from initial minting to the discovery of new and exciting NFTs, is a sign of the growing accessibility of the NFT market.

And following Twitter’s rollout of profile NFTs, TikTok launched its first creator-led NFT collection, TikTok Top Moments, further underlining the power of the NFT market and the role of celebs including the likes of Lil Nas X through to Gary Vaynerchuk.

In another sign of the demand world’s most famous sports brand, Nike applied for a series of NFT trademark applications in November and followed it up with a collaboration with Roblox to create Nikeland, an online world, and the acquisition of virtual sneaker company RTFKT.

How are NFTs transforming the music industry in 2022?

Due to the growing popularity of NFTs, the emergence of decentralised streaming services such as Audius is gaining traction. Several musicians, including Deadmau5, Weezer, Linkin Park’s Mike Shinoda, and 3LAU have chosen to collaborate and contribute to the Audius music platform.

The growing number of musical artists who have joined the platforms shows the potential of NFTs in the music industry. 3LAU, an electronic music producer, issued the world’s first tokenized record album, raking in more than US$3.6 million, which was a collection of NFTs representing his best-selling album, with just 33 made.

In addition, Shakira recently collaborated with BossLogic to release her own NFT. This shows that NFTs in the music industry go way beyond music, which signifies where the music industry is headed.

Shortly after acquiring the Death Row record label, famous rapper Snoop Dogg released his latest album Bacc on Death Row (BODR) as a stash box of NFTs. Each of the 25,000 stash boxes costs US$5000. Each stash box includes 17 NFTs, one for each track on the album; collecting all 17 NFTs would entitle fans to benefits from the Rapper, like the opportunity to party at Snoop’s LA mansion.

In a recent interview, the rapper said, “Death Row will be an NFT label, we will be putting out artists through the metaverse […] Just like when we broke the industry when we were the first independent [record label] to be major, I want to be the first major in the metaverse.”

As more celebrities and artists resort to NFTs, digital collectibles are becoming a significant money source for musicians, particularly as the world recovers from a global pandemic.

To tackle the subject in more depth BigONE talked with Australia-based Dalton Grant, head of staff at Animal Concerts, which specializes in metaverse-based concerts, designing and minting NFTs, and working with artists recently including Busta Rhymes, Alicia Keys and Snoop Dogg.

Grant said that previously artists ended up with a small slice of the sales revenue, with the majority going to their record label.

With NFTs the biggest difference is that artists can not only create their own music but also release it directly to fans, bypassing major record labels, he said, “For the fans, this allows them direct contact with actual artists, which gives them a unique piece of their favourite artists, which creates a unique connection with the actual artist. For artists using a metaverse platform they can have an audience of two or three million, with artists from both Japan and New York.”

The last concert for Alicia Keys in Miami was also recorded in 3D to allow streaming in the metaverse, Grant added.

What are the risks for artists and fans?

The ever threat of scams and market manipulation has been with crypto from the start so it’s worth considering how this may impact the relationship between artists and fans, as NFTs are increasingly part of the relationship, the emotional bonding process if you like!

The subject got a pretty got going over on The Atlantic article from Amanda Mull ‘Celebrities and NFTs Are a Match Made in Hell’ which looked at the downside to celebrity endorsement. “Whether the technology itself will have more useful applications in the future is presently unclear. This is all speculative for now, in several senses of the word.”

While CoinDesk described the recent flutter of celebrity NFT activity and its questionable motivations as “perverse deal-making.”

Grant agreed it is important for celebrities, from Hollywood celebrities to sports stars, to take care to honour their fans, not merely pocket the money from NFT projects, “I heard about a story the other day of a footballer who ran off with fan’s money without delivering anything, and to be frank I think that’s really disgusting. If everyone is to benefit, and you do the right thing, and that community is supported by supporting you, then having integrity is very important and it is important to create something that lasts.”

Certainly, the recent headline that porn star Lana Rhoades has made off with US$1.5 million in an apparent NFT scam, after complaining about her “negative and rude” community is the mirror opposite of the kind of integrity required to sustain a viable NFT marketplace.

Another worry has been the recent US$320 monster hack of Wormhole, the bridge between Ethereum and Solana, which allows for cheaper minting of NFTs than using Ethereum directly. There’s also been controversy over the legal battle involving CryptoPunks, sparked by an issue with the original version of the code.

Clearly, with such innovative technology, there are going to be some mistakes made along the way so it’s good to hear of solutions helping creatives make good use of NFTs. One neat solution to the threat posed by bridging hacks to NFT transactions was unveiled last month by Ethereum-based platform Harmony, with a Bored Ape Yacht Club Passport.

The advantage of their bridge solution is that it does not move assets, instead, it confirms the asset ownership, and it enables artists and creators, put off from participating due to high gas fees to mint and collect NFTs as a result.

An exciting future for NFTs

When you think about it, it makes sense that NFTs will disrupt the existing trajectory of the music industry through personalisation and deeper connections. Joining the expert discussion Ben Appleby, founder of The Cake, said he looked back to the musician Prince, who changed his name to get closer to his fans and to distance himself from the record company.

“Now with financial freedom and blockchain and Bitcoin that removes those middlemen allowed financial freedom to do things with money that they hadn’t been able to do before because of these third-party counterparties. The artists are free to connect with audiences. They can sell and auction their own art in their own way. They don’t have to compromise on what they’re doing and the messages that are out there.”

BigONE Chairman, Anndy Lian said, “It’s important to honour the relationship between fans and celebrities if NFTs are going to make a real contribution to both. What I think we’ll increasingly see is the use of NFTs to build closer relationships between top fans and celebrities.”

Lian added, “Celebrities must choose the right channels to distribute their NFT IPs. For example, I think Mike Tyson’s NFT launch on Binance NFT Marketplace is a good choice. Redbull’s F1 Team signed with Bybit NFT Marketplace is also a good choice. This technology allows this kind of engagement to happen both at scale, across global communities, and at a very individual granular level, which I believe is exciting. We are just getting warmed up.”

 

 

Original Source: https://e27.co/are-nfts-and-celebrities-a-match-made-in-heaven-20220421/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

j j j