NFTs beyond trading: the future of marketplaces

Transcript

the MGM welcome back to another episode of web3 Academy your trusted source for useful and legitimate web 3 information so you don't fall behind the internet Revolution I'm Jaybird joined by my co-host Kyle reedhead and we believe that web3 is going to change the world that's why we're here to guide the world's top talent down the rabbit hole as you participate contribute and capitalize on the opportunity and it was great to have someone on the podcast is building in the space of nft marketplaces we have been talking about empty marketplaces honestly probably since we launched web3 Academy I feel like that was about the time that this whole thing started going a bit crazy

last year and it's just like it's gotten crazier and crazier ever since and you and I have just kind of said given our opinions just as Founders ourselves and as someone who might be running a business you know if we were to be running a business to Marketplace what would we be doing what we'd be thinking so it's been a lot of speculation and it's really nice to bring someone who actually is building the entity Marketplace space and not only that but like has been in the space and building the space for a long time now with wearable it was really great to have Alex come out and get his kind of opinions on this whole crazy story that's been happening yeah and as you said Alex salnikov who's on today's show is one of the co-founders of wearable and he tells us the origin story

variable when it was just five of them back in the early days because Rebel was really one of the first marketplaces and then he takes us forward to what it's been like to navigate this space to survive in this space they've dropped a token they've used a token as an incentive and reward and so he talks about what that's like and how does that work short term does it work long term what does that lead to and it also led into a great conversation about other marketplaces Open Sea blur what are they doing where is this space going in terms of fees and Creator royalties how are we making sustainable businesses our creators just going to get washed out by

all the trading that's happening this episode is just like a must listen so much packed into it yeah I think one of my favorite Parts it's something we do discuss quite a bit but he just Alex painted such a clear picture of this was kind of the difference of the two there's two big kind of segments of the nft marketplace there's the Traders and then there's the people that are using the stuff that don't even think of them as financial instruments right these are the ones that just want to use this stuff for whatever it is a game or for access to a community or whatever and then you have these other people that don't even see them as that they see them just as a financial instrument and so marketplaces need to build for each they're both going to exist and that's great some provide liquidity and it

makes the kind of the whole system work so you need it but it was cool to see his thoughts on both and then like how you build marketplaces for each and why each are going to need their own separate ux their own different things so that was kind of an eye-opener for me and I thought he really explained that very interestingly for us and right now now we are in Traders World most nft buying and selling is happening by Traders that's why most the marketplaces are targeting that customer that is where the current product Market fit lies but in the future in not even I was in a decade in a few years there is going to be hundreds of millions of

people that are buying nfts for as you said Kai not because they want to make money off it and speculate it and trade it but because they want to use it and because it is valued to them already a decade what do you say in a decade why did that even come up let's just take one minute to listen to our sponsors who make this show possible the future of social media is here and that future lives in web 3 on top of lens protocol web 2 social platforms are broken and right for disruption you see the epicenter of social media is the creators and yet they are the most neglected web 2 platforms like Facebook Tick Tock and Instagram are all essentially robbing creators of their worth creators are a new type of entrepreneur forming new types of

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the right direction visit lens.xyz to learn more today what if I told you that industry Pioneers from Flagship web 3 Brands such as consensus polygon binance Unstoppable domains Ledger and uniswap will all meet up in one place this summer you don't want to miss this I'm talking about the Epic web 3 conference taking place in beautiful Lisbon on the 9th of June with over 20 curated talks speed consultations with web3 experts networking sessions with investors and even the opportunity to raise funds this conference has it all and you'll get the tools you need to succeed in this industry plus we at Webster Academy will attend it hosts a community Meetup with

you in the other smart Community before the main event so come along meet us Network and start building alongside leading web 3 innovators we can't wait to meet you remember Lisbon Portugal 9th of June we've got a 15 discount for you but ticket prices go up every few days so get your tickets today by using the link in the show notes and to to the promo code web3 Academy 15 to secure your spot or if you become a pro member you can get an even bigger discount so GoPro today and we'll see you in Lisbon Portugal the 9th of June at the Epic web 3 conference Alex welcome to the show so happy to have you here today thanks for having me I'm excited we got the Rarity

gang leader here on the show today super stoked to be talking all about wearable I mean before we jump in though just based upon everything that's going on Alex how are you doing how are you guys doing like what the heck is going on in nft marketplaces right now there is a lot happening in the space right I feel like we're just in a massive hangover from 2021 still I remember the beginning of 2021 and that was when everybody felt that we can do anything with nfts we're going to rob D5 into nft because it's more understandable we are going to do tickets for the nfts we are going to do everything with nfts and then you have a thousand projects that take an

individual Nations okay we are going to do this and now we're still seeing that many of them just like can't keep up with the brands and everybody is extremely upset about that and we can't really do much that happens all the time you run a thousand experiments and 100 of them is doing okay 10 of them is doing perfectly lately attached blue tubes and we've got like two rolls we've got azuki we've got clonex everybody's burned everybody's burnt broke from The Hangover it's good and we should all develop our expectations from the industry to get back to something meaningful and we should like receive of

what we'll actually do there is a lot of cool stuff happening on the other side as well like Lance ever passed as I had of tea every followers and nft there is an unchain social network based on nft right so some of that is wow and some of that is okay people expecting somebody to I know there's something cool with their Market monkey idea actually did good taking the key out of the ass or somebody well that's authentic that's cool partnering with the big web two companies is much less cool than looking in psychedelic fraud tell us just to give a little background available how big is your team you mentioned right before we hit recording that you guys have got in office in New York in an office in Lisbon how many

people are on the team no we are 45 people now it's a decent decent size what's it been like for all 45 of you you know navigating not just the market changes but then also these new competitors coming in blur doing this big airdrop openc creative royalties changing like I can't imagine a business where every day as a leader in your business you must just be like oh my gosh like give me a break give me some predictability or some certainty here let's say I don't remember when the last time I was bored no I have a big sabbatical over like half a year or maybe a little bit more and the idea was that I'll do the like dopamine

detox I I won't play games and stop smoking I felt extremely bored getting back to your question so we're a little bit ahead of the curve we were the first to start partnering with with web 2 companies first adopt flow first to get burned on that route first the issue token doesn't have to Marketplace front first to get better and then proud so there is a lot of stuff that's already passed and the blur will pretty much have the same they will get the lower market share air droplet exhausts and but they they have a great product they will get a consistent Market shared we don't know what that is so far but it will be uh we can already tell my predictions like from 20 to 50 maybe

about 50 percent but I don't know we started as an art company and like art meets your art sell your art and we've been always committed to long-term business models so and now our focus is communities so there is a lot of stuff happening in the market every day and there's a lot of opportunities to make money there is a lot of opportunities to get registered or opportunities to get burned and there is a lot of randomness but it's like oh this happens today this happens tomorrow today plus 10x tomorrow minus 10x and what we're trying to think is what are the actual use cases of all that that makes sense that makes sense that in the long run or it makes sense

okay no question there is a lot of digital artists that did not have ways to monetize their work now they have a ways to monetize their work authentic ownership was the second one the PSP is like 50 70 speculation but there is still kind of feeling that if something makes sense out of all this so but the community aspect makes sense there is a lot of people that buy something just because I want to be in the community I don't care how much it costs I'm not selling all good some expectations of your IP to do something important also makes sense it's fundamental it's non-zero it's like crowdfunding almost

some artists got some money created cool AP and now we're all collectively owned AT AP it's a non-zero sub game it's not that I lost in year one with both winning out of this mean artist so it doesn't make sense the utility and passes make sense like super air pass Ledger Market pass you can sell it that's it right org communities IP gaming music music didn't even happen yet so that's it the market is small the market is like okay we have four use cases foreigners now we're dividing Marketplace into Community marketplaces for your own communities that was like first art then it just that's how it is

for us we're okay um 10 years in crypto I want to build something that will be 10 years from now here and not pop tomorrow I'm curious how many people do you think are in the nft market right now I know you can look on chain but it shows you know number of wallets which is not a number of people and then I think a lot of the volume and stuff is like blown way out of proportion due to airdrop farming and wash trading so I'm just curious like when you look at the nft market how many people do you think what are the real volumes like just give me an idea of the size of this Market can open C is pretty good estimation of that if you'll go to similar web you'll see the track until open see it that's going to be tens of millions of people

that it all occurred about nfts and just checked what that is probably tens of millions maybe 20 million maybe 10 million at the high but was 50 million but that's like very random so pretty much out of my head roughest estimation would be 10 million people a local ft is 1 million half nfts like 300 000 tray actively that's actually a really great breakdown because those are exactly what I would have said when you said 10 million at first I was like no way 10 million that's too high but you're right that's 10 million looking about a million actually have nfts and then 300 000 are these traders that are pretty much creating all the volume that makes it look like it's way bigger than it is

so let's take a step back here I want to go back to the beginning of wearable you mentioned the use cases and what was it that you guys saw when you first started wearable tell us the origin story how did you start it who is involved was it in somebody's garage what was the grind like in the beginning give us that origin story original story real quick five people farting team we've been in a cafe that was by the end of my sabbatical I was extremely bored I was researching the space shutting all the links of anything remotely interesting to all my friends like oh and this and that have you seen

this and it's in that and you know like because some of the friends and tanks like yeah but somebody was like responding oh yeah this is cool or one of the guys that I knew from 2017 alexiq with CEO of her book he was yeah that sounds really cool let's talk about that and that sounds really nice let's talk about that so we started just like talked much more about it and then at some point he assembled as a group of people said yeah let's let's just brainstorm let's think about it like eating desserts I remember I ate maybe four desserts like bumping out the brain with sugar and a lot of green tea so green tea and desserts okay was like what are we gonna do we are all

submerged into the vaporatory space we're all already sold on the idea of ownership we all own crypto we all travel across the world it feels amazing coming everywhere understanding that whatever happens like sanctions or whatever I am I'm the owner of my life this ceiling of ownership of being Sovereign about the destiny sold on it so what's inside it what's inside it Bitcoin 40 minutes time to 11 transaction right dinosaur Defy is really cool into it a little bit late it's 2019 so most of the D5 projects already in full swing okay nft has just started there is infrastructure there's

wallets there is on ramps there is everything and the new wave of people will come but there is almost no nfts there's scripted keys and couple copies of crypticators and that's it so okay this is the sector let's just do something let's just experiment let's do something in this sector there's no main industries let's do a tool that will allow you to create how would that all work well there was super error where you need to register and wait three weeks until somebody would verify that you're a real artist we're not into the we're Engineers so let's keep that part sober and if you just connect the wallet and create nfts so that's how we started right so just a simple tool upload the picture name description connect wallet meet that's

it we shared the DNA of being sober and not asking about it about doing something that was what brought the success to wearable that a bunch of creators that got kicked out from somewhere or that didn't have time to apply or that believe that it's insulting that they have to apply and somebody will tell me that they're a real artist what the hell so all these people that were all sold on The Sovereign ownership of your art they all came to wearable and started minting there and we grow into Marketplace and then okay what's next after art Marketplace it's protocol and vertical as marketplaces that's the story what was it like having the success that you have and that large explosion when all of a sudden you were the marketplace and

everybody was interested and everybody was on board what a wave what a ride that must have been oh yeah excitement over the roof I know what to compare it with like burning man just overwhelmed with all this emotions you meet people on the street and they know who you are and they say wearable school all your ideas are amazing awesome okay okay let's jump into I want to talk about the business of marketplaces because it's not something that enough people are talking about we're all talking about the wars and we're all talking about who's gonna have the most share in the end but like how do marketplaces actually make money what is the revenue model for these marketplaces are they sustainable that's what I want to chat about so let's start with wearable what's the business model for wearable

how does wearable make Revenue currently what do you guys see as long-term how you're going to be sustainable and make this company as you said last for decades the Marketplace business it's an exchange business all exchange businesses come down to the fact that warrior book has a network effect order book is like a mini social network you can't opt out of Facebook because all your friends are on Facebook but suddenly if all your friends now on telegram you're on with them on telegram you can't opt out of telegram and the software can be all the same you can create a copy of Facebook tomorrow but it will be empty so the marketplaces are about people interaction are about the

networks people that come together to transact with each other and that's what the marketplace and exchange business in general is built across so we have seen the same in the crypto exchanges we will have appointments we have wind base we have cracking we have Gemini we have all these guys that are meeting social networks they're mostly constrained by their geographies so Finance is is global but not in the yes coinbase U.S Global Gemini has a bid license in New York and whatnot so how this networks once you have this network of people transacting and the order book that is liquid you have a constant stream of people that just come

there for to meet other people you come there you come to blur today and you'll see better prices than another Marketplace because of the liquidity so the marketplace businesses get out there gather that initial liquidity and establish retention something sustainable and then monetize open system started monetizing day one was 2.5 and grew into their order really big we started several months we didn't monetize that we had zero fees and then we added token and scientists and token incentives are effectively negative fees and we had zero fees then we had negative fees then we had five percent fees 2.5 choir side 2.5 seller side now we are at two percent fees one percent side so blower started with zero another

negative and if your meat Governor stocks they will do positive fees at some point with the government's decision right that's what they say opencstar 2.5 0.5 and base has Progressive fee scale if you are just starting you have much more fees then it goes gradually almost to zero care Market maker if you create a lot of volume problem could zero fees and they monetize on additional Services it's all the same you have an audiobook warrior book is defensible you can't really just create another order book and have it work well day one and it's what you monetize usually and to me the

marketplace has started with the high fee and now the more commoditize the trading becomes the fees should drop and we're seeing some inconsistencies I have a feeling that the marketplaces will converge to something 0.3 to 1 percent is total and that would be fair and that will not go even more down zero is not sustainable 2.5 percent probably not sustainable as well that's the two realities we have and the market didn't find yet what it is in between blur is learning negative fees but it will come to something like 0.5 percent of these long term probably very interesting so and I agree I think there's got to be fees this whole talk of it's going to go to zero like because blur to that that's

not gonna stay there's just no way it makes no sense so it sounds like then the goal of a Marketplace is I need liquidity I need more people to bring their nfts to my Marketplace and put them up there so that's kind of where the war is and blur has done an incredible job at getting liquidity as you said as well walk me through the like mindset like how do you get more liquidity like obviously you can launch a Toca like you said these negative fees is what you're referring to there you launch a token and you basically pay for people to come and and give you the liquidity eventually that's going to run out what's next is it find a niche it says there's something else another model that I'm not thinking of right now like what are you guys thinking of in terms

of that utilizer started a new network or you make people switch from one network to another so when you're starting a new network for example a niche right otherwise new art marketplaces that appear That's okay this special kind of art generative art and flex hash or you could pay a lot to make people switch why people switch to blur because the switching costs are there and they are high so how much does it cost to switch from open C to blur it costs several thousand dollars for top players that cost several tens of thousands maybe even hundreds of thousands if you share your the ownership of the platform and it gives the airdrop of a hundred thousand

dollars that's enough to switch that's really the only two options either you do a new new chain new Layer Two on your Niche or there's tokens it's something that we didn't see in web 2 in web 2 almost none of the projects hadn't seen this flips but with tokens when you can share the big upfront ownership that's really helpful another option would be to to the 10x Innovation right so you do 10x value and people switch without the monetary incentives but because I it's something like my space to face they still isn't just so much better you switch and this actually happens in crypto a lot of times in 2017 how many exchanges was there at some point the

bittrex was number one extensions and then colonics was number one exchange then Okie coin was number one exchange for okx and then binance there was a lot of reshuffling just because there's always a new technology that makes everything better L2 plus L3 Plus account obstruction it is the first chain without the gas prices if any of the current players sleep on that right then you have the completely 10x user experience you don't need to think about gas prices and hang transactions and now all of a sudden okay new player that comes exactly the right time to do that flip everyone Jay just one second I just have a question

on the token side of things and maybe this is a little bit ridiculous but I'm just curious most of the marketplaces now have launched a token outside of of openc do you get one shot of this is there a way that you know you already said that blur is going to run out soon or eventually is there something else you can do in terms of tokens would it be I don't know if it'd be launching a different token I don't think that would make much sense or is there something more you can do with your existing token I'm just curious if you can walk through maybe a strategy where it would make sense that you can like reignite your token to bring people over again or is it like you get one shot and you're done that's a great question it depends on how ethically you are with launches so

if there is a big portion like x infinity right probably one shot I can imagine relaunching exit now it sounds like a cold actually unethical sometimes this is not intended right but the more popular it is the less chance you get exit team is great right they did not intend this to be that way does this just happens sometimes you get a talking economy in which the bubble effects house where you did not expect that and for a moment it's wow what that wow it's so hard to really launch in that sense blur actually does feel interesting because it didn't go like up 10 times it's relatively stable at Price although the market cap is relatively high for it

as well like three billion market cap fully diluted openc secondary shares is like 1.5 billion at the end stage you can always think about token as the user acquisition you pay for the user to come and then it gets some kind of value so you have a mobile app and you buy traffic for the small app and convert it into subscriptions that's not bubbly at all there is a spend and there is an LTE you can do the same with token you can just spend token and get an LCD of the user back that works too very interesting we talked about the revenues coming from fees which makes complete sense when blur launched and it had no fees and everyone's like okay fees are going to zero a lot of people thought okay maybe memberships some sort of subscription model to use in marketplace

right like the SAS model do you see that as a potential viable option for marketplaces as well or maybe you get some Pro features or something if you pay for you know 10 bucks a month or whatever it is the model with which Robin could disrupt it to traditional markets where zero fees subscription Alibaba has zero feeds and they charge advertising space so you can translate whatever you want with zero but then if you want to get promoted you need to pay but that's the only two examples I know though most of them are just transactional themes and do you think that both those examples will come into nft marketplaces there will be one

Marketplace that goes after advertisers and wants to be that model there'll be another one that has the subscription fees I don't think so no that's two out of 100 so maybe when we'll have a hundred marketplaces for nfgs two of them will do experimental I think plural just do fees and everybody also just do small fees right genius fault was doing redistribution fees to LP but then there is a very small fee that comes to the company and they did what 40 million in revenue of that direct fee that goes to their company not to LPS last year so that's pretty much what will happen

everybody will have cities just smaller Amazon does both though don't they don't they have fees for non-prime purchases or Sellers and then when you're Pride like if you go Prime you obviously get like Pro benefits and you pay membership so don't they have both yeah and advertising I want to talk about aggregator marketplaces for a second so take us into how that fits in the space and how you think about that at wearable and where you see that taking you long term and how that fits into a strategy of owning a percentage of the volume I could get interests are it's like a debts you know you kind of have to have it at this point there is a lot of liquidity in other places and if you don't have at least

five ten percent market share the today then you have to have an aggregator otherwise you'll just represent such a tiny fraction of the market so for big marketplaces aggregators are good unless they try to use that as a vampire attack so gem doesn't have it's all or for everybody who's aggregated by Jam it's actually not positive like but if you're open to see and a dollar aggregated to you and aggregated not to be one more ice on your order but to temporarily show both of the things have been cut you off right but you have works the ingredients yet then it's gonna be dangerous and so both blur and open C

today are closing their order books for each other the Lord doesn't allow you to aggregate easily they don't have public API and they even have means for their private API to make it harder to Aggregate and open C just released zip Port 1.4 to do the same I think now they require one more signature when you when you try to aggregate you need to arm not only signature from the user but you need the signature from the open seat so this will become harder competing with with vampire attacks and aggregating to gain Advantage but aggregating to just be a distribution helpful will continue to live and so if you're an aggregator how do you attract the users how do you

ensure that people are using your service in order to buy when they can go to another aggregator and get the same motion same liquidity mostly ux so you see you come to one place and you see I know top 24 hours Collections and that's a very basic way to navigate you come to another place in Eco what's active in five minutes or who are the coolest Community for this artists that follow each other so do you see the marketplace industry going where there's like one that rules them all like is it like there's one big one and the rest start to fizzle out or do you see that it kind of goes into the edges and there's like I don't know millions of marketplaces and everyone has a

Marketplace like where do you see the Dynamics of the space going in the future it's hard to tell or seeing the Divergence of retail and pro use cases like e-commerce versus trading and e-commerce is I want to buy something I want to buy digital stickers and I want to play with my friend the new FIFA with the digital sneakers and and this was kind of created for that and those for trading and there is another party like oh let me buy that and then shidor Twitter that my company doesn't deliver what it's promised and if you're trying to go to the Second Use case that you don't really care about

items art or something you care about oh whether I am at the right time so there you see are being the NFC you will be used tensor it's like exchange on Salon you see magically and you come there and the first thing you see is the chart the same as unbalanced you see the chart is book averages because they cancel the audio even on board the chart is like right down in the corner and you see the word of book the front but there is a next generation of them that is just charred okay here it is forget about the nft is the same as your C20 tokens let's just trade it so let's just trade it because it's a good time to enter it's a bad time to enter convergence and for The Exchange Route it feels like they will

converge to the one big or several big while for e-commerce it will just like proliferate fractionalize you want everyone have a Marketplace like Shopify Gucci store you don't go for for Amazon to buy Gucci That kind of dates and is that the focus for wearable now because I know you guys are focused on community marketplaces so you're smiling because I'm teeing you up here for lead us into why you've decided that strategy yeah that's our Focus these are the items are cool right they're fun e-commerce experience for verticalized experience it would be sad if nfts such as big promise just converts with University 20 tokens and

so save it like it had the same purpose it would be sad we want uh clone eggs metaverse bodies with wearables we want cool things and this cool things they're just don't feed the same you act every one of them wants to help different ux slightly different branded fun tailored for Community tailored for use case while exchanges okay I don't care what I'm trading same interface that's why we're going vertical and protocol that is a decentralized infrastructure that allows the new generation of multiple storefronts that are all unique and tailored to very specific use cases just

to summarize a little bit you're kind of trying to take the financial side of nfts out of it and like make it about the utility right about the experience or about the community or whatever it is that the nft offers and so you're saying there's kind of going to be two there's like there's people that see nfts as a financial instrument and it's like they're ux their interface to buy and sell these things is like charts in technical analysis and like all that crazy stuff and then there's people who like don't even think about this thing as a financial instrument it's like this is their access to go play a game with their friends or their access to enter whatever Community or event or concerts or whatever and that interface that ux to buy those things whether they're ever

going to sell them or not maybe not like that needs to be very very different than those who see this as like you said charts and ta and all that kind of stuff and they might be buying the same things it's just people are going to see them as very different reasons of why they're buying it that's kind of what you're saying here ejected yep perfect some research it's very interesting to see the nft market like that I think we've always talk about that Jay we're like look there's a bunch of speculators there's Traders but there's something else to it and I love that that's what you guys are kind of carrying towards is really cool it makes me think that like one is the Bloomberg device that every trainer has on their desk and the other is Shopify that allows anybody to make their own store and sell their own stuff

and have more control of the ux so how are you guys approaching this I know you have two products you have your Marketplace Builder and you have the white label tell us about these two products and how they work and how they offer a Creator or a community the opportunity to create their own Marketplace it's simply we didn't have that product at all right so where we started we started with a white label we found some partners that said oh we want our own Marketplace no yeah yeah that's bullets build your own Marketplace we build them a Marketplace they decided what we need and then there is 10 of them and then there is a hundred of them okay you will probably gonna do it so that will allow you to build it yourself and that's why we built it tool with

digested the knowledge of what are the most common denominator across the white labels and created the tool that is much less powerful but you don't need to be in in the pipeline and you don't need to wait and the white label is monetizable you need to pay for The Upfront piece so you come to the self-service tool and you create your own Marketplace and self-service tool with gradually becomes more and more complex to date we just have the ability to add multiple collections to it just before like almost half a year was just one Marketplace one collection and we had 2 000 marketplaces created with one Marketplace one collection so it will grow and grow and grow and at some point you'll have an update page that okay

select one of the standard designs and tailor everything and then select URL Collections and connect the manifold and Zora and everything as a primary minting tool this is the just big diverging directions into the no code tool of marketplace Builder and we'll always have a white label because this is where they you get an input a lot of input the company comes on sale we want to build something that was never built build that for us with one school Innovative stuff that doesn't exist in the scalable way of the market so let's build that so if you want to build something cool and Innovative just you know let's talk Link in the show notes for Alex direct email walk me through some reasons of

why someone who's using nfts in their business you can choose the type of nft that is the utility why would they want their own nft Marketplace like what does that do for them and or their Community rather than just like go use openc and sell there like why would a Founder want to have their own Marketplace what examples are you guys seeing one big example would be okay it is the business that just got used to control everything right someone like fox or McFarlane Toys they don't have intersection with other audiences and just can't drop and make a drop create your own community and spend the marketing budget and just send everyone away it feels very weird and

pretty much the same logic applies to that three companies you did a massive draw you spend several hundred thousand dollars on marketing you assembled several hundred thousand people in your Discord you rallied everyone behind the drop and then you send everyone away to the marketplace that's great you've got liquidity you've got some some other eyes looking in your collection it got to the leaderboard and again you got something back but then you want to do one more drop and you don't even have the emails of all the callers that of your nft is to say okay there is another job happening let's talk about royalty for a second what are your thoughts on fruelty I mean I feel like I don't even need to ask a question yeah what are

your thoughts are they gonna stay are they gonna go is it going to be possible on chain you know we keep hearing that there's tons of developers that are working on making it on chain but then it's like uh there's always going to be somebody who comes and builds a workaround what are you seeing where do you think it's going yeah finally enough it's going to be random you know there was several projects in 20 21 22 opinion that try to create world just for years into any Targets they were calling the debates basement tokens when every time you send your stable coin they fee is taking out and then redistributed to all the stable coin folders something like that and it didn't work it's gonna say I never

heard you out so that's exactly why didn't you ever hear about it because for liquid assets you want the lowest spread blurry decentralizes spread was like list lower bit higher your 100 velocity you want somebody to be able to enter and exit the asset real quick with the same prices it doesn't make sense to tax transactions and not only for Marketplace for the founders too if you're a founder of a liquid asset you want it to be liquid because that is what allows you to have better people entering with more bags and the ultimately floor will be bigger for the projects without the royalties for the liquid asset or for the art

the rules just make a ton of songs you buy an art and you want to sell it 10 times I already don't care to pay you five percent it's very just like identity based culture based makes a ton of sense to have it so this is two things now the market is awesome it's a state where not necessarily fundamental things happening sometimes it's a random someone did something and then another one did something else so there's a world in which we're just like losing worlds is for everything just because it doesn't work really good assets and then uh we don't have any good weight to differentiate between these two there's a world in which again we lost it all there is a world in which

somebody came operates the on-chain ability to enforce it and we continue to enforce it for all of that just again because why not so it it should be a liquid asset yeah to be honest the other use case that I always thought of as tickets Taylor Swift's recent concert being such a great example it was tickets to her show selling for tens of thousands of dollars because people really wanted to see her and there's no money flowing back to her as a result of that right not a single extra dollar goes back to the person that really deserves that money so yeah I agree I think if there's going to be some where it sticks and some where it doesn't yeah I think for tickets it also makes sense though I'm pretty sure

there's gonna be a lot of people trying to flip concert tickets if those Go full on nfts it was a lot of money to be made there scalpers oh gosh yeah before we get to start to wrap up here I'm just curious what are you excited about whether it be something that nobody's working on that you're excited about whether it be something internally that you guys are working on that you're able to share with us or whether it's something else that you're just you know hey I think this is going to be cool whenever it happens I'm not going to do it but somebody's gonna do it I'm excited about Innovative minting I feel like you know we had cryptic kitties that were leading creatures with DNA living and breaking on chain and after that we went all the way back to it's a flat picture uploading the blockship

okay that may be necessary to just for everyone to get the idea of LFC is but we need to get back to the ideal limit Dynamic I'm excited about interoperable 3D items between games and metaverses you wear the same shoes you wear the same items you have the same Avatar flowing through the games it's a lot more challenging than just like make it out of T how far are we away from that would you say a couple years two next Bull Run it will have much more interesting use case that always happens like that you're hungry and better Market everybody ran out of money I get here your brain starts to think it's got to build for the future okay awesome I want to get to a speed round but before

I do I want to just give you a chance Alex anything else that you want to tell people about you mentioned if anybody wants to White Label a Marketplace to reach out to you guys anything else you want to show or please tell people how they can find out more about wearable or find you online for the Innovative meeting experiences up to try to build something cool with you guys again and if you go to that show just like drop me a message on Twitter it's Insider Xerox on Twitter or just wearable you'll find somebody in DMS awesome let's just do a quick speed round before we wrap here here couple questions Alex first one so this might be a tough one for you

usually what's an nft you'll never sell I should ask first how many nfts do you have are you a big collector are you a big Trader relatively not I have something like 200 300 most of that is art that was somehow got to me and what when building wearable buying some random things out of the blue chips I own like cpg through Google and meffer and a couple smaller ones and for some reason when you ask that question I think a matter I might not sell a muffler because it's just like Vibes it's an identity right you relate to that brand to that identity as does that whole community and MF versus I mean that has been a consistent Community

floor place and you know changing in that aside it seems to be I'm not an MF for holder but we've got a few mfrs on the show and they always actually mention that Community are you using AI at all right now and if you are how are you using it oh that's a great one I recently had shot GPT the previous on the third versions to generate the Rarity token Manifesto and it was great it's it wasn't that even a very tokens I give wearable token money fast then he said he knew that rare book at the rarely tokens you what it means I use that I need to use more and all I totally got used to right selling emails and just content it's amazing it's

capabilities Alex this has been a blast man what an incredible show so much to bring to the space thank you for everything that you've built thank you to your whole team we need more Builders like you in the space thank you for amazing conversation and I loved it loved it thank you for doing that of this page as well let's bring It Forward thanks for everybody listening have yourself a great day thank you for listening to web3 Academy we hope this helps you along your web 3 journey and if it does please share this episode And subscribe so you don't miss the next one nothing in this podcast was Financial advice crypto and web 3 can be risky you can literally lose it all in fact if you invest on account of what we say you probably will lose it all so don't do

that in all honesty the point of this podcast is to remove the noise of markets and price and focus on utility implementation anyway so you should not take any of this as Financial advice thank you friends and see you in the next one