It’s been a big year for digital artists and non-fungible tokens (NFTs), but the hype around them isn’t just for the art world. NFTs are being embraced by independent artists and musicians as a viable digital ownership model.
From the sidelines, it may seem like a fad. Still, with over $10 billion traded in the third quarter of 2021 alone, it’s clear that this emerging technology — a blockchain-based tool able to monetize digital content — is growing into a major industry. Visual artist Beeple sold a tokenized digital artwork for $69 million through Christie’s auction house and NBA’s Top Shot, which allows basketball fans to buy and sell tokenized video clips of game highlights, has generated over $715 million in transactions.
In response to this massive growth, both individual creators and firms as wide-ranging as retail, music, entertainment, consumer products, fashion, and more have begun actively exploring ways to engage with the world of NFTs. The latest big entry to the space is Throne, an NFT venture led by Gee Roberson Kanye West’s manager and British award-winning producer Nellee Hooper who has worked with U2, Madonna, Soul II Soul, amongst many others.
Roberson and Hooper are supported by a collective of blockchain engineers and institutional investors from the space looking to bring NFTs to the next 100 million users migrating rapidly to the metaverse.
So What is Throne?
An NFT marketplace and network for the next generation of creators and collectors. Focusing on the defining NFT revolution to bring everyday users on-chain to transact NFTs and build a trusted collection.
According to their website, it’s open to all creators; there is no screening process; creators can list for auction their works in minutes, while collectors from around the world can purchase, make offers, and bid on digital assets in the form of photos, videos, audio.
What is an NFT Marketplace?
In contrast to platforms like Spotify and Netflix that offer unlimited digital content for a subscription fee, NFT platforms are built on the idea that just like physical content, digital content is limited in quantity and can therefore be meaningfully owned and traded.
Blockchain-based platforms use this technology to verify the provenance of digital content, like how an auction house might verify that the work of art is in fact the original and not a replica, and some platforms allow users to burn items, further reinforcing the concept of scarcity. The blockchain can also facilitate royalty attribution, sharing a percentage of the sales revenue with the original creator when the NFT is traded.
What is THN?
THN is the native currency or ‘cryptocurrency’ of the Throne network. Since its listing debut in September 2021, it has traded over $150 million on various crypto exchanges including MEXC, Gate.io, BitMart, amongst others.
What will the Future Hold?
At this point, you might be wondering which of these platforms will rise to become the Amazon of the industry. It’s only natural to be concerned about investing in a platform that won’t be obsolete — since traditional marketplaces have winner-takes-all dynamics, meaning once a single platform achieves scale, it’s nearly impossible to overtake it. Unlike traditional markets, however, it is difficult to determine if one NFT platform will be able to dominate this market.
NFT markets, by nature, are more open than their traditional counterparts. Since NFTs are built on public blockchain infrastructure, most transaction data is public, so they can’t build the kinds of data moats that lead to monopolies. In addition, the success of augmented platforms suggests that differentiation is important to both buyers and sellers.
There’s already strong demand for multiple NFT marketplaces, each focused on a different domain and offering specialized tools to help their partners succeed. Several platforms can coexist within an industry, as long as they offer different tools and experiences. Some NFT art platforms might specialize in minting functionality, while others might build games on top of them.
In streamlined platforms, where the lowest-cost marketplace may attract the majority of both buyers and sellers, these platforms won’t offer the types of customization and industry-specific support offered by augmented platforms. While streamlined platforms have done well, augmented platforms have also enjoyed success, with Dapper Labs bringing in $7.6 billion at a $4.3 billion valuation and Sorare raising a record-breaking $680 million at a $4.3 billion valuation.
So if you’re a creator, don’t wait for “Amazon of NFTs.” Try out a few marketplaces and see how they fit with your unique offerings and business needs, and if you find one that seems right for you, dive in. Despite still being a young industry, NFTs have shown real promise, creating value for both buyers and sellers.
NFTs might have started out as crypto enthusiasts and tech-savvy artists’ science projects, but they’re now rapidly entering the mainstream. Whether you’re a major brand like the NBA or an up-and-coming independent artist, partnering with the right platform is a crucial first step to driving customer engagement.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. The content was purely for informational purposes only and not intended to be investing advice.
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