Web2 brands are better suited to the NFT Space, than Web3 brands (hear us out!)

Things that don’t make sense at first:

• Web3

• Exercising for fun

• Why people like Ross, from Friends (honestly, we still can’t get our heads around that one. He’s the worst.)

Add to that, the following statement:

‘Web2 brands are better suited to the NFT space, than Web3 brands.’

(That’s us , we’re saying that).

Have we recently been hit on the head? Or are we on to something? You be the judge.

Here’s our thinking:

Yuga Labs (creators of Bored Ape Yacht Club) sold the initial run of 10,000 BAYC NFTs for 0.08 ETH a piece – which was around $192 at the time.

That’s a cool 800 ETH ($1.92M USD) – nothing to sneeze at.

But to date, they’ve made 21,661 ETH from the 2.5% royalty fees programmed into every secondary sale.

…that’s $36M USD in todays ETH prices (possibly even more, depending on if/when they converted some of that into USD)!

But here’s the rub:

Yuga Labs had to build the BAYC brand from scratch. That’s not something established Web2 brands have to worry about. They’re already there.

And herein lies the opportunity…

Web2 companies can take their brand value, attach it to an NFT, and have it grant the holder access to a range of new opportunities.

Whether it’s discounts, early product drops, invites to exclusive events, one-off artworks, meet n’ greets with industry heavyweights – whatever (the sky’s the limit).

Point is: they already have the brand and the audience – which means they have a head start.

All they need to focus on is making a smooth transition into the Web3 arena. Then they can leverage a business model that was previously out of reach for most Web2 brands:

The Software as a Service (SaaS) style ‘sell once, earn infinitely’ model.

It’s a big opportunity, and the fact that more brands aren’t jumping on it shows just how early we are.