Nft social clubs and how they work
Of Quant IST (published)
Mini
Have you ever seen Hollywood movies that show exclusive underground clubs that require a special phrase to enter? That’s pretty much how NFT social clubs work.
The NFT world is showing signs of decline with shrinking sales figures. In the first quarter of 2022, there were 12.5 billion USD in NFT sales, this figure fell to 8.4 billion USD in the next quarter and fell to 3.4 billion USD in the third quarter of 2022.
It seems hard to believe, especially after the surreal hype that had driven the prices of NFT artwork, and anything related to NFTs to ridiculous heights.
However, there is also a silver lining to this narrative. Suddenly, the industry is moving from the hype of NFTs to the utility of NFTs. Newer projects have a utility-driven threshold for success today. Experts always knew that only a small percentage of NFT projects would hold water in the long term, and we are seeing that prophecy come true today.
Among a handful of user-driven NFT projects that exist today, this article will discuss NFT social clubs, what they are, how they work, their benefits, and some of the most popular NFT social clubs in the world today.
What are NFT social clubs?
Have you ever seen Hollywood movies that show exclusive underground clubs that require a special phrase to enter? That’s pretty much how NFT social clubs work.
They are essentially a community of people with similar interests, and access to this community, their meetings and areas is limited to those with a specific NFT. The NFT acts as the key to the club that can be bought, sold or traded.
NFT social clubs can take a variety of forms, from co-working spaces to restaurants to pool tournaments, house parties, networking events, etc. Such clubs are almost the perfect use of NFTs: the non-fungible aspect ensures that there are no duplicates, and no one can cheat their way into such events and rooms with “fake tickets”.
Benefits of NFT Social Clubs
The easy access
Whether the event is online or offline, a simple QR code or wallet integration will suffice to get you into the crowd. You don’t have to struggle with remembering login details or securing a physical access pass or badge. All it takes is a smartphone and you’re good to go. Not to mention, it also comes with the pride of being tech-first.
The smart contract magic
It is convenient to follow rules when they are printed via the smart contract of NFT. For example, if a member needs to be removed from the community for some reason, you can have a voting clause and get the necessary things done. You can also be issued trial memberships that can expire when the trial period is over, without the need for physical recall of badges.
Increased earnings
Owners may sell, auction or exchange NFTs; it makes much more financial sense to have an NFT-based membership that also acts as a store of value. For the organizers and creators, NFT smart contracts can be made royalty-based so that the creators get a cut every time an NFT changes hands. And because these NFTs are a combination of utility and rarity, that makes them all the more valuable.
Popular NFT social clubs today
Among the famous NFT clubs today, three stand out – Friends With Benefits, Maxwell Tribeca & Flyfish Club – let’s learn a little more about each of them.
Friends with benefits
This is one of the world’s most popular NFT social clubs with a 3,000-strong member base of web3 enthusiasts, including creators, ideators, developers and more. It holds online and offline meetings, both domestically and internationally, where the web3 fraternity gathers to shape the future of the nascent space.
Access to local events is limited to people with at least 5 FWB tokens, while global events require 75 FWB tokens. Friends With Benefits is an example of exclusivity driving the popularity of a club.
Maxwell Tribeca
David Litwak came up with hosting the best house parties in his 8,000 square foot luxury house, but limited access to just the Maxwell Tribeca NFT social club. Membership in this club costs USD 1000 and renews monthly at USD 250, all powered by smart contracts. The organizers also get a 2.5 percent cut when an NFT is sold from one person to another.
FlyFish Club
Gary Vaynerchuk is one of the most outspoken NFT evangelists. His new, not-yet-opened restaurant also doubles as an NFT social club (as well as an excellent marketing strategy).
There will be two types of membership available – one which gives you access to the exclusive Japanese restaurant and the other more exclusive which gives you a table with your private chef. The price of NFT was 2.5 ETH, but rose to 3.5 ETH in a short time.
Conclusion
The NFT bubble appears to have burst. Fortunately, the utility NFT social clubs bring to the table will ensure they have long-term growth prospects. They are much more than a temporary fad – unlike their digital profile pictures – and may find more uses in the future.
