Publishing startups want to use web3 and NFTs to sell shares in books

Esquire recently published a, umm, interesting piece about the crypto “revolution” allegedly coming to the book business. It’s a frustrating, if oddly fascinating read, in that it presents these ideas with completely sincere cheerleading:

What if you could own a stake in Harry Potter?

What if the book series worked like a publicly traded company where individuals could “buy shares” in it, and as the franchise grows, those “shares” become more valuable? If this were the case, someone who bought only three percent of Harry Potter back when there was only one book would be a billionaire now.

Just think how that would affect the reading experience. Suddenly, a trip to Barnes & Noble becomes an investment opportunity. Early readers could discover “the next big thing” and make a $100 contribution that turns into $10,000 or even $100,000 if the book’s popularity grows. If readers could own a percentage of the franchise, they might be motivated to help that book succeed. They can start a TikTok account to promote the book via BookTok, or use their talents as filmmakers to adapt it for the screen. All of this will increase the value of their original investment.

At some points, the author compares this scenario to Kickstarter rewards—essentially owning a stake in the book because you’re an early investor. Nice. I hate it, but okay. Granted, there’s a lot I also hate about the publishing industry as it is now, but also, okay, nice.

There is some interesting implications here about the kind of monetized gamification of fandom – using NFT ownership to “lend” IP for fan-fiction, encouraging fans to engage with a franchise with the promise of an eventual financial payoff. But this still sounds like a house of cards with a payout that depends on everyone else treating house of cards as a viable and desirable currency. Maybe that’s the trick. Perhaps the best case scenario is… this just replicates the existing problems of IP ownership, but with different owners and different tools. Tidy.

Perhaps unsurprisingly, there aren’t many firm plans in place for any of this, just a bunch of people smooth-talking investors with promises of turning fandom into assets. Still, I found myself intrigued by the article, if for no other reason than because the author really, really tries to present these ideas without any kind of cynicism.

The crypto revolution wants to recreate books [Elle Griffin]

Image: Public Domain via stock