NFT brands and Web3 companies are not the same. Here’s why
Once there were only crypto companies. In the era before NFTs, when crypto was still completely niche, the blockchain was governed by developers and traders. But now crypto traders have given way to deep-pocketed DAOs and individual crypto-artists for a new paradigm of full-spectrum NFT project management teams.
Where is the line drawn between the lovable NFT brands scraping by via PFP primary sales, and the literal empires being built by established (and appropriately licensed) Web3 companies? One obviously precedes the other, but in terms of functionality, do they differ that much? Well, yes and no. As shown during nft now x Mana Commons The Gateway, both brands and imprints have continued to make their presence known in the bear market, while illustrating how fine the line is between “NFT-native” and “Web3-centric.”
NFT native vs. Web3-centric
The biggest difference between NFT brands and Web3 companies is akin to the differentiation between bourbon and whiskey. This means that while all NFT native brands are Web3 centric, the opposite is not true. This is due to the simple nature of NFTs as a blockchain-native technology. If Web3 is to grow with decentralized means, NFTs are undoubtedly a precursor to Web3. And as Web3 evolves and more players enter, they need not be involved in NFTs, but will undoubtedly benefit from the historical achievements of blockchain-based non-fungibility.
Take one device such as Rug Radio as an example to further illustrate this separation. The project was founded as a decentralized media platform, designed by and for the NFT community. In this case, it is clear that branching into the PFP market is on brand with non-fungibility. This ecosystem expansion also speaks to burgeoning Web3 models of funding and construction, as Rug Radio can profit significantly from the sale of a large-scale collection that can then be used to benefit the community.
Still, for one companies like Ledger — the global platform for digital asset security — as previously mentioned, Web3-centrism does not have to come at the expense of NFT nativity. For example, Ledger has been around for nearly a decade, has staying power in the blockchain industry, and continues to set the pace for asset security in Web3 and NFT. But while the company has announced new NFT initiatives, it hasn’t become any more of an NFT brand than it ever was.
You may wonder, “Do these differences really matter?” Honestly, yes. Because if we consider the backlash that NFTs have continued to face from entertainment industries and consumers alike, it makes perfect sense why brands refuse to mention the term “NFT” during their literal NFT launches. “Web3,” on the other hand, is still widely viewed with rose-colored glasses as the fabled next iteration of the Internet. But whether this will hold up as NFT use cases expand and are further implemented into our everyday lives is anyone’s guess.
