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Talks about intellectual property, or IP, often focus on film culture. Leading producers like Disney make billions by owning invaluable intellectual property like Marvel, Star Wars, and animated classics that can be stretched and expanded to infinity to the end to take advantage of beloved characters. with whom the public has a pre-existing relationship.
As intellectual property has come to dominate large sectors of the arts and entertainment industries, companies and executives have increasingly realized that original stories are often harder to sell than fictional worlds. , whose previous iterations have been raised in the zeitgeist for decades.
While the rapid rise of intellectual property may seem like a relatively recent phenomenon, it is actually a very old practice. The ancient Greeks recounted their classical tragedies over and over again, captivating an audience eminently familiar with the narrative arcs of works such as Oedipus Rex, Promise Unboundi Agamemnon. Even in the year 500 BC, that is, IP powerfully dominated the masses.
So how do NFTs fit into a discussion of intellectual property? Among other things, NFTs are an emerging art form. And like the movies, plays, and other media that preceded them, they will eventually be subject to the same immutable laws that govern longevity, profitability, and mass appeal. The following are some of the main reasons why IP plays a seismic role in the NFT landscape.
Related: Everything you need to know about NFTs and cryptocurrencies
Recognizable products and characters guarantee resilience
On the OpenSea trading platform alone, there are over 80 million individual NFTs. Dozens of websites have sprung up that allow people to coin their own NFTs. And hundreds of companies have launched their own spin on digital assets. While all of these are strong indicators that NFTs have accumulated a lot of cultural momentum over the past year, they also have the potential to flood the market to the point where determining value becomes a dizzying and futile exercise. . Like the seventeenth-century tulip craze, a turbulent and highly speculative craze with which NFTs are often compared, the frenzy of interest and economic activity is destined to return to the land. One of the most prominent questions about what a fragile bubble can be is which NFTs will survive after they explode.
If the NFT market sees a period of consolidation at some point in 2022, there is little doubt as to which assets will survive and retain much of their value. Major “branded” NFT collections such as Bored Ape Yacht Club, CryptoPunks, Azuki and World of Women Galaxy have established fan bases and millions of dollars in weekly trading volume. In addition, they were introduced to the market with fixed supply sizes, ensuring scarcity and therefore convenience. Like all art, NFTs only have financial value to the extent that people agree to continue paying them. Those with the most recognizable IP have by far the best chance of making sure that digital customers continue to do just that.
Related: What You Can Learn About Coca-Cola, Acura, and Gucci NFTs
Known avatars confer social status
There are several categories of NFT, and the most popular currently is the avatar. Avatar NFTs are essentially profile pictures of animated or pixelated characters, such as an anthropomorphized ape or cyberpunk with a nose ring and a cigarette hanging from their mouth. As these avatar NFTs have become increasingly entrenched in niche corners of the Internet, they are becoming something that almost all high-end art and coveted goods double as: status symbols. .
An example of this incipient trend can be found on Twitter. Some users have started showing an NFT avatar that they have instead of their own headers on their profile pages. Needless to say, of course, the rarer and more valuable the NFT avatar that adorns its pages, the more prestigious and brilliant the status it confers (the new social media label states that people only show the NFTs they bought and owned). ).
People are starting to use their digital assets in the same way we have long used designer bags or extravagant sports cars – as personal emblems that show wealth, power and success. How does this connect to IP and the biggest argument about its inevitable dominance over NFT space? Simple: Only the most unique and instantly recognizable NFT collections will have any of that symbolic weight when used as personal avatars. As we continue to dive deeper into a future Web3, where our digital counterparts lead parallel lives to our physical existences, the possibilities of NFT IP to augment and adorn our avatars on the Internet will only amplify. Call them immaterial possessions.
Related: IP is for JPEG, NFT are proprietary
NFT collections can become pillars of new metaverses
Last month, a mysterious trailer was released for a Yuga Labs project called “Otherside.” Although very little official information has been made available so far, many crypto and NFT sites have strongly speculated that Yuga Labs, the creator of the Bored Ape Yacht Club, plans to launch its own metavers. The trailer, which features the classic “Break on Through (To the Other Side)” by The Doors, features a veritable line of assassins from the most coveted IP NFT, which includes not only BAYC but also CryptoPunks, World of Women and Cool Cats.
While we may not have a complete understanding of what Otherside is or when it will fall, what is clear is that these NFT characters will largely appear on a new gaming platform to win. Whenever it touches, Otherside will undoubtedly be the most powerful coalescence of two major Web3 phenomena: the virtual reality platforms known as metaverses and the NFT avatar. It’s also an extremely logical progression, which will only widen the gap between the most popular and valuable NFT collections and the tens of millions of other digital assets floating around the blockchain.