Max
WakeUp Labs Co-Founder.
July 3, 2022
The end of short-term vision on NFT collections
What we see on NFTs collections current business models.
Recently, we were analyzing last year’s NFT collections. We also talked with some startups that are building in the NFT ecosystem. Here you will find some of the things we’ve been openly discussing.
Last year, we saw startups making money by selling NFT collections across time. As a short-term goal, most of them achieved the sold-out.
On the other hand, as a long-term goal, it was not really successful. Floor prices decreased significantly, active addresses declined, and new users did not arrive. To sustain the expectations of NFT Holders, the collections promised future improvements, staking artificial rewards and/or subsequent collections airdrops, among other perks.
Therefore, if nobody was really using it, there was no organic reason to print more of something in the NFT market.
What can you do as an NFT Collection startup if you want to survive?
Stop selling new collections; you need to create scarcity. New collections will only add more and more NFTs to the market, but you won’t be actually helping the demand. Instead, the supply will be increased, causing oversupply.
Create utility. What does your collection have to offer as a differential? You may want to find some use-cases for it. Such as a ticket to an event, an early pass to a game, or even renting it.
Reduce the speed of money of the main collection. It will help if you reduce the market supply in an organic way that makes sense. To do this, you will need to build and Integrate features on the top of the main NFT Collection, meaning be composable. Remember DeFi Legos? Why not build NFT legos as well? Let’s integrate composable NFT protocols that generate more utility for your collection.
Generate revenue streams for NFT holders. Along with the utility and good feature integration, you can aim to generate revenue for the NFTs holders. For instance, sharing royalties could be possible; even with delegation (renting), the NFT holder could generate a revenue stream.
At WakeUp we are pursuing to help startups, NFT Collections and users to be successful by building components to superpower their NFTs and achieve sustainability.
