Exactly how people get rich with NFTs

A few weeks ago i minted four azuki nfts And this cost me about twelve thousand Dollars which from the outside might Seem like a crazy amount of money to Spend on collectibles from a brand new Project and since then i’ve had people Ask me what it is that i see in azuki But i didn’t want to make a video just Showing uzuki and so instead i want to Talk about why i specifically buy nfts Like azuki in the first place now to Understand this we need to talk about Two huge movements that are coming out Of nfts right now and so the first is The idea of community-owned brands and The second is the rise of the culture Investor now in some cases these Investors have already made millions From buying into the right brands and i Think we’re going to be seeing way more Success stories in the next few years Although we’ll talk about some of the Risks as well later in the video i also Think that if you watch this one until The end you’re gonna have a much better Understanding of why people have become So obsessed with nfts over the last year And it might make you more excited about The future now there’s a very common Criticism that you might hear nowadays Which is that a profile pic collection Like azuki doesn’t have any inherent Value and that it’s just a stupid trend That is ready to die off any minute now

But here’s the thing when you actually Look at something like azuki or bordeaux Yacht club you’ll realize that they’re Not really doing anything that hasn’t Already been happening for a while now They’re basically just creating an Entertainment brand then they’re Marketing that brand and expanding and If you don’t know what an entertainment Brand is just think of star wars or Pokemon or james bond the only Difference is that up until a few years Ago there were only a few centralized Channels for these brands to emerge from So if you wanted to make a movie you Know sure you can go independent but Outside of a few edge cases the vast Majority of movie franchises have to go Through hollywood boardroom circuits and Get a green light from old school Executives and if you wanted to make a Video game you know again you could go Down that indie path and there are some Examples of successful games that have Done that but it is a harder path and by And large the most successful games tend To partner with a major publisher like Microsoft sony or nintendo and in fact The gaming space is getting even more Centralized as we saw recently with Microsoft acquiring activision take two Acquiring zynga and sony acquiring Bungie however we’re now seeing a new Channel for these brands to emerge from

And it involves decentralized Fundraising mainly using nfts and over The next few years i think we’ll see Some of these decentralized brands grow To be as big as the blockbuster Franchises that we’re used to seeing From centralized studios in fact it’s Already sort of happening so in the case Of board apes they’re now being valued By private investors at five billion Dollars which actually puts it higher Than the market value that marvel had When disney acquired them for four Billion dollars back in 2009. obviously Disney got an absolute steal and marvel In retrospect should have been valued a Lot higher but here we can see how an Nft brand is already starting to be Comparable to one of these juggernaut Franchises now to be clear the internet Has been bringing us down this path for A while now and the first step was the Rise of crowdfunding sites like Kickstarter but i think this is the next Evolution which i believe is gonna be More effective and beneficial for Creators so much so that even Kickstarter has decided to go all in on The blockchain to stay competitive okay So we’re seeing an explosion in the Centralized brand building but at the Core of this is a new class of investor That i’ll call the culture investor so You can think of culture investors as a

Combination of a critic a fashion Hypebeast and a venture capitalist these Investors are pretty good at figuring Out what type of content will resonate With a larger audience you know they can Figure out what can go viral and they Have a good intuition on creators and Their ability to execute on their vision But alright what does a culture investor Actually do well first off as we all Know they’re serial like button smashers Here on our beloved youtube because they Know it’s completely free but beyond That they make investments into emerging Brands usually with nfts and by doing That they’re making bets that certain Brands will grow both in terms of the Size of their audience as well as the Actual revenue that they generate again If your spidey senses are tingling and Telling you that this all seems made up And strange remember that this already Exists okay the only difference is that Now anybody can become a player it Doesn’t have to just be a hollywood Executive and so the name of the game is Simple right buy brands that you think Can grow and then make money if they do But people are still confused about how This all works right how can a brand go From zero to potentially becoming a Household name and even if they do get That big how can you get rich by just Holding their nfts so let’s tackle those

Two things one by one starting with the Path that these nft brands can take to Go from zero to 100x or more and then How investors can get rich if they get Aboard one of these rockets so to begin All these nfts start by having a Creative idea that inspires people so This could be art you know music a Little bit of lore it doesn’t have to be Fully fleshed out at the beginning it Just needs to give collectors an idea of The vision that the creators have in the Case of azuki it was a series of art Designs that would eventually expand to Streetwear merch and even an anime the Current art should be seen as just the Beginning and they even hinted that it Would be upgraded to 3d models down the Road okay so you presented your idea and Now the next step is to raise money and This is where nfts come in and the Summary of why this is so much more Effective than typical crowdfunding is Because people are willing to spend a Lot more when they have the potential of Reselling their nft and also because These nfts can capture a lot of the Upside when the brand actually grows and It’s not uncommon for these projects to Raise two to three million dollars on Day one and in some cases like with Azuki they were able to raise 30 million Dollars in just a few minutes which is Insane but while that initial fundraiser

Is nice you can’t just go on relying on A large sum of money that is slowly Shrinking over time and so the next step Is to bring in revenue on an ongoing Basis and there’s a few ways to do that For example the most common revenue Source is from royalties on secondary Trades so today it’s common for Collections to take two to five percent Sometimes as high as 10 of every Secondary trade and this can flow Directly into a community treasury Another source of revenue are licensing Deals and for example doodles is a Collection that has a system where Derivative projects that play off of the Doodle’s brand they can get the green Light to actually launch if they pass a Vetting process and if they do get that Green light they have to give a Percentage of their sales to the doodles Treasury and this is exactly what They’re doing with collections like Noodles another method we’ve seen a lot Is selling merch and so almost every Major project has at some point sold Physical merch and we’re going to be Seeing a lot more of this and finally i Think the next step will be more Traditional product revenue and so if Azuki does end up making an anime you Know that could mean ad revenue if They’re on youtube it could mean you Know more licensing deal revenue if they

Go with something like netflix and that All flows back to the treasury like it Would with a centralized brand now we Have the idea we’ve raised some money And we have some revenue coming in the Next step is to build and use that money Wisely so all the best projects have a Road map for how they’re going to Develop the brand and that could mean You know hiring artists it could mean Hiring business development people like How board ape yacht club hired guy Ozieri to be their manager and connect The brand with top celebrities or it can Be paying world-class writers to build Out the brand like in the case of Jenkins of valet where they hired a Best-selling author to write their book And so at this point the brand is Getting bigger and bigger and the price Of their nfts might be getting to the Point where they’re unaffordable for Most people and so the next step is the Evolution where the brand goes from Being a collection to being an ecosystem Boarded yacht club for example is a Collection but once it got too expensive Then they released the mutant apes which Is a way for people to get in at a lower Price point and they also have the Kennel club dogs which are even cheaper So three collections under the same Brand and the next step is going to be The release of their ape token which we

Don’t know much about yet but we can be Sure that it’ll play a role in Everything they build from here on out And it’ll probably be the cheapest way For people to get exposure to the board8 Brand and so that’s the end goal right The original collection becomes an Umbrella brand and below it you have an Ecosystem that’s branching out in all These directions but now that we know How a brand gets big the next question Is how a culture investor can benefit From all this as someone who just buys The nfts so let’s talk about the culture Investor one more time and the different Ways that they can capture value from The brand and this is super important And something i think most people still Misunderstand and for this i’m gonna Need a value stack to help us visualize Things to start off with most projects What we see is that nfts can be treated As just collectibles and by the way Holding the original collector’s item For a huge brand does have some value in The real world people sometimes pay Millions of dollars for first editions Like in this example of the first Spider-man comic beyond that there’s the Utility layer so often you know nfts Give you access to a discord access to a Potential airdrop maybe some parties in Real life you know things like that and The value of all that increases as the

Brand gets more popular right so being In the discord with george lucas might Be very valuable today to a lot of People but maybe not so much if you know The star wars screenplay was still being Written out but it can even get better Than that because in my opinion the gold Standard is when the community owns at Least part of the intellectual property Rights now how does this work well in The case of board apes the nft Collectors own the ip writes to the Actual nft that they own and so they can Commercialize their ape any way they Want we’ve also seen examples where the Entire ip is owned by a dow such as the Case with song a day dao and this is a Project where a musician created a song Every day for over 13 years and then Turned each individual song into an nft And here’s how it works song a day is a Legal co-op that owns a copyright to Every song a day’s song that means that If you’re a member you co-own the rights To every single song and the royalties From these songs both on chain and off Flow into the dao lastly you have Creative commons which is when the Intellectual property is in the public Domain that happens to be the case with The kryptos that are behind me and the Idea is that you know you hope the memes Get spread around enough that it brings Value back to the originals well let’s

Stick with the boarded yacht club model For now so how can you actually make Money by owning the ip to your nft well There are a few ways but one example Would be you know let’s say boarded Yacht club is creating a game and they Offer a licensing deal where they get to Use your board ape as an npc in the game And in exchange you get some small Percentage of the revenue now that’s Highly simplified but i think we’ll be Seeing more deals like that soon enough And then lastly you have community Ownership of the organization so not Just the ip rights but also in deciding What deals to make you know the growth Strategies who to hire etc and this is The final piece of the puzzle right end To end community ownership granted this Still requires some changes to be made On the regulation side but i think That’s a matter of when not if so it’ll Circle back to the original question Which is why i bought a nuzuki in the First place it’s because one i think it Can be one of those brands that goes From zero to 100 x and two i think the Team understands the different ways to Bring value back to the collectors for Instance they’re actively pursuing ways To let the collectors own the ip to Their nfts which is something we spoke About i do this with full knowledge that This is one of the riskiest ways that

You can spend your money right i know That nfts aren’t contracts yet in the Traditional sense and so there’s always A level of trust that the creators will Always keep your best interest at heart And even though you might have been Right and this is an idea that could go Viral we now live in the tick tock age Where trends can shift on you before you Expect it but again this isn’t different To traditional brand development as we See it in other parts of the Entertainment industry they’re just Risks that you have to acknowledge Alright guys so there you have it one of The biggest things that are happening With nfts right now and something that i Think most people don’t understand when They’re just outright calling this a Scam thanks again for watching and i’ll Catch you in the next video