- TechFin Consulting
Guide to Become A NFT Content Creator in The Metaverse
Updated: Nov 23, 2022
Metaverse is a new buzzword in the tech world that has taken the internet by storm in Web 3.0. Created by Meta, Metaverse is a limitless virtual world with its potential recognized by hundreds of companies. Tech giants such as Microsoft and Google have set foot into the Metaverse by making big investments. Metaverse can be categorised into two, an open Metaverse and a closed metaverse. Anyone can access an open metaverse and build on it, while a closed metaverse is only restricted to permitted individuals. With Metaverse’s progression fueled by cryptocurrency and Non-Fungible Token (NFT), its market size is only expected to increase exponentially with time.
As the heart of Web 3.0, it has provided a paradigm shift in the ways businesses operate. Prototypes of next generation metaverses such as Decentraland and Somnium Space are beginning to show the resemblance of the world we’re familiar with, from purchasing land and social interactions to shopping and asserting ownership rights. The economy of the Metaverse is determined by the authentication of digital properties, such as a metaverse land, car, and clothing. As such, content creators are in demand to build on the various Metaverse platforms available to create an extensive library of assets.
In Web 3 space, content creators may be familiar with the term NFT, but how do content creators go about minting NFT and building a community? Before we get started as a NFT creator, let’s define what NFT is and how it works in the Metaverse.
Non-Fungible Token (NFT)
NFT is a cryptographic token that shows the ownership of a unique digital asset. It can range from art, and in-game items to music and even pictures. The metadata of each NFT is stored securely on blockchain technology, which stores verifiable proof of ownership and each token’s uniqueness. Since each NFT is secured by a cryptographic key that cannot be deleted, copied or destroyed, it enables a robust, decentralised verification essential for the metaverse society to succeed and interact with other metaverse societies.
How to Mint a NFT?
Minting a cryptographic token refers to the process of taking a digital file and turning it into a unique token on a blockchain. The data of that digital file will be recorded on a distributed ledger, and it can’t be altered or forged. The record in the ledger provides the user with control over the fees of the digital asset. NFT transaction is automated via the use of smart contracts.
To be a NFT creator, understanding your audience and knowing the value of your work are the essential principles to becoming an emerging creator in the Web 3 space.
1. Select a Media
As a starter, you’ll have to determine which digital assets you would like to turn into a cryptographic token. Digital artworks and photography are some of the most popular types of digital assets to mint. The most expensive digital art NFT sold to date fetched a record sum of USD 91.8 million, named “The Merge”. Instead of a single owner, The Merge was sold in units known as “mass”. Each “mass” cost USD 575 when the sale began, and it increased by USD 25 every six hours.
However, the sky's the limit when it comes to the media format for NFT. Some platforms even allow users to mint videos or music.
2. NFT Pricing
Recent studies conducted by First Insight has shown that consumers across all generations -from baby boomers to Gen Z- are more inclined to spend more to purchase sustainable products. Hence, it is important to consider the value that your unique cryptographic token holds to the buyer, such as NFTs with additional utilities and unique perks such as complimentary gym membership.
One example of a NFT with utility is Awesome Possums, a collection of 12,000 possum-based NFTs with a positive message. Aimed to help those struggling with addiction and mental health, Awesome Possums plans on donating regularly to charities focused on Mental Health and addiction recovery. They’re also having plans to host free therapy, counselling and motivational services in the near future. This is one of the few projects that provide meaning other than earning money.
The value of a collectable NFT could be greater and more long-lasting if it's tied to a cultural conception that it can be expected to stay relevant for a long time.
3. Connecting With Like-Minded Individuals
Networking is an essential part of brand building, especially if you want to become recognisable. With everyone hopping onto the NFT bandwagon, you’ll need to leverage social media and communicative platforms such as Twitch, Discord and Telegram to foster relationships with fellow creators and followers.
You can become part of the community by engaging with fellow artists or in NFT projects. Participating in conversations, contributing ideas, & answering people’s questions are some of the ways you can open yourself into the community, creating opportunities for future collaborations and support.
One example of a decentralised social networking platform is “So-Col”, or “Social Collectables”. Created by a Singaporean Influencer who created Irene DAO, So-Col aims to bridge the gap for influencers and content creators to convert their social media content to Non-Fungible collectable items. This helps content creators to monetise their content and build communities with their fans.
4. Establish Your Brand Identity
With the increasing competition to date, businesses need to go the extra mile of ensuring that they stand out in a crowd. To achieve this, a strong brand identity is needed to capture and maintain people’s attention. Good brand image is a contributing factor for successful marketing campaigns. Beyond just logos and brand name, your brand consists of the entire identity of the business, it serves as the personality of your business. The more people resonate with your brand’s persona, the more likely they will support your work. After all, a brand’s reputation is also another factor that could influence the NFTs’ perceived value and the people that are working to support your brand.
One example of a successful NFT brand is Bored Ape Yacht Club (BAYC). Created by Yuga Labs in April 2021, BAYC has surpassed Cryptopunks in its all-time sales volume, allowing it to become the second-largest NFT collection in the world. BAYC is a collection of 10,000 NFT, that provides the members with a stylishly cartoonised unique ape character and access to an exclusive community. The benefit of owning a BAYC NFT includes owning its commercial usage right that the member to build products upon, acts as an ID card for an online clubhouse and real-world private events, high resale value and hence, an investment.
However, minting and selling NFTs shouldn’t be perceived as a get-rich-quick scheme. There will be some upfront costs to sell your digital assets in this fashion, and there’s no guarantee that anyone will be willing to purchase your work.
Nevertheless, it is a promising field to turn your digital labour into block-chain-based assets that could potentially reshape the way creators get paid. The NFT world is certainly worth exploring if you’re an artist or digital entrepreneur.
Similar to a NFT, social token is a rising form of tokenisation that can create unique ecosystems that are far more user-friendly and rewarding than current advertising and subscription models. As one of Web 3’s innovations, it allows followers to go beyond consuming a creator’s content and offer them the additional benefit to invest in a creator’s growth.
For example, if Shawn Mendes, a famous songwriter and musician, were to be discovered in a few years (rather than a few years ago), his fans would be able to support him by purchasing one of his social tokens and, in turn, receiving “stock” in Shawn’s career.
If an “undiscovered” Shawn were to offer social tokens to his early fans, he’d have the potential to raise immediate funds, allowing him to accelerate his career. The tokens would also likely boost his popularity as these tokens are typically designed to reward fans’ attention. At the peak of his career, he could offer a private concert for token holders, potentially driving the value of each token up a notch.
Ultimately, social tokens promise a way for creators’ communities to crowdsource their rise.
Social tokens are the backbone of creativity and financial independence for both content creators and fans. However, social tokens aren’t as prominent in the market as they should be since there aren’t any social token platforms.
With the rise of Web 3, creators are granted new tools to leverage on. This gives content creators the ability to free themselves from the grip that distribution platforms have traditionally held. These platforms will likely incorporate Web 3 innovations into their offerings to survive in this new internet age. The impending overlap of crypto and the creator economy is bound to change the lives of content creators, providing them with significant economic opportunities and creative freedom.
Does this spark an interest in the Metaverse for you? Join us at SMU Academy x Techfin’s 1-Day course on “Diving into the Metaverse” happening on 10th February 2023! Taught by Soh Wan Wei, the founder of IKIGUIDE Metaverse collective, individuals will be eligible for Skillsfuture subsidies of up to 90% off! Sign up here today.