Have Bollywood NFTs lost their glamor during the crypto crash?
- NFT transaction activity has fallen from $3.9 billion in February 2022 to less than $1 billion in March 2022.
- Amitabh Bacchan’s BeyondLife.Club, Salman Khan’s Chill Bull NFTs and Vishal Malhotra’s NFT-funded film Ilm made headlines in 2022.
- Blue Chip celebrity NFTs are more viable for investment than star NFTs that provide a one-time use.
We have come a long way from when Bollywood actors seemed like the real stars, inaccessible and in a galaxy that was beyond the reach of the layman. Thanks to social media and digital technologies, we may now have an “abundance problem”.
With NFTs, blockchain-based digital collectibles, fans now have access to digital avatars of Bollywood celebrities and can even attend their movie premieres.
Last year, many Indian celebrities launched their NFTs or Non-Fungible-Tokens, a unique way to sell their art online. It can be a poem, a song, a film dialogue or even a film premiere.
However, NFTs have seen a steep drop in interest since last year. NFT transaction activity crashed by three-quarters to less than $1 billion in March from $3.9 billion in February. How have Bollywood NFTs fared after this crash?
Fiat vs crypto
NFTs can be bought either with fiat money – regular money like INR – or with cryptocurrency. NFTs that were bought with fiat money have been less affected by the market crash. For example, Guardian Link, a platform that manages Amitabh Bachchans
“Over 12,000 NFTs were sold within 45 seconds of being published. Guardian Link also provides credibility checks for these celebrity NFTs so they cannot be replicated or sold anywhere else,” said Arjun Reddy, Chief Technology Officer at Guardian Link.
For NFTs that were purchased via digital currencies, the story gets a bit complicated.
Utility and engagement drive NFT value
How well NFTs have fared depends on several factors – utility of NFTs, star power, star engagement and platform credibility. If the NFTs do not provide lasting use cases for customers, they are unlikely to be popular.
’83’ – a film starring Ranveer Singh – in January sold all its digital collectibles within an hour of its launch on ‘Social Swag’, a platform for customers to learn directly from celebrities and not an NFT platform.
Actor Salman Khan released the “Chill Bull NFT Collection” in July – based on his 2019 film “Dabgang 3” – through Bollycoin, the star’s NFT platform. However, the utilities of these NFTs remain null with no reference to them on the official website. Business Insider had not heard back from Bollycoin at the time of publication.
“Art must always be supported by lasting utility. Often celebrities launch their NFTs and go radio silent. But if an NFT buyer wants to sell the NFT to a digital Bollywood avatar, will they be able to do so? They should have an active NFT community,” said Sandesh Suvarna, vice president, WazirX NFT marketplace.
Vishal Malhotra, creator of Asia’s first NFT-funded film ‘Ilm’, which means knowledge; and also the first actor to launch his NFT in India did just that.
“Ilm world’s first NFT funded film has been certified by the Censor Board of India. Even during the bear market, over 50% of the film’s NFT passes have been sold. The bear market allows NFTs to go mainstream, lowering the price. A Sholay film NFT has classic value for a Bollywood fan and will always have increased resale value, Malhotra said.
Fans who own ‘Ilm’ NFT passes will have access for life for all his future film releases, Malhotra added.
Of blue chips and star power
“Blue Chip NFTs” – those NFTs that have the backing of big names, venture capitalists and large organizations – will continue to do well, is the general consensus.
Rario, a blue chip NFT platform has over 20,000 users worldwide. They have partnered with cricketers like Rishabh Pant, Ruturaj Gaikwad and Dinesh Karthik and are backed by top global cricket leagues.
“Esports is growing fast. Cricket fans want to be associated with their favorite players. At Rario you can access their tournaments, merchandise and even host your own virtual tournaments. We have partnered with world cricket celebrities, says Ankit Wadhwa, CEO of Rario.
The star power of a mega-celebrity like Amitabh Bachchan, combined with the backing of a well-known decentralized exchange like Guardian Link seems to be the winning combination to own a lucrative NFT.
Amitabh Bachchan’s NFT ‘BigB Punks #1633’ which sold at $10 a piece last November is currently priced at $1500/piece.
Celebrity engagement
One of the most important factors that determine the value and demand of celebrity NFTs is the extent of the celebrity’s involvement.
Dhruv Saxena, head of strategy at Singapore-based NFT celebrity platform Fantico, deals with NFTs of Indian film stars like Kamal Hassan, Madhavan and lyricist Javed Akhtar. He believes investor overlap between crypto and NFTs exists, therefore buyers are more cautious.
“This is very typical after a few ‘bull run’ days. Value can only be created by creators or their fans. While fans will continue to like whatever it is they do, creators (artists, influencers, actors, musicians or athletes) will use this new medium to create more supply,” Saxena added.
