Finding Utility for NFTs

Transcript

[Music] foreign [Music] and the title of the presentation is finding utility for nfts who am I I serve as Chief Operating Officer at FSL which is find Satoshi Labs so there's a lot of finding here let's hope I can find some utility in the next 15 minutes so FSL is the parent product Studio the creators of step in but also of our door

which is our decks of more which is our nft Launchpad and Marketplace and we've recently announced a web 3 social game called gas hero and more on this and a lot more in the next few minutes but first let's begin with where we are in web2 so there is a famous app infrastructure cycle that Dany and Nick Grossman wrote in the beautiful post in USV about five years ago they start talking about the fact that there is a beautiful circuitous relationship between app and

infrastructure and every cycle of app in inspires the next infrastructure cycle it happens across industry they've mapped very beautifully how it happened in web 2 so starting from the messaging and email clients back in 1970s which then led to ethernet which then led to email clients which then led to Gmail and so on and so forth it happened across infrastructure cases as well for example planes are the applications that led to infrastructure of airports electric bulb is the application that then led to infrastructure of electric grid

however with crypto we are at a point where there's just too many l1's l2's browser extensions multi-chain Bridges wallets roll apps ZK VMS where are the users where are the apps onboarding the users onto web3 and my point is on the builders building in this bear who are onboarding users who are building the apps such as people from FSL Shameless pack plug but sorry but not sorry and this is where nfts come in the picture

because nft is not only enabled building of these app but more importantly in adoption of these apps Justin Cann who is the famous the founder of Twitter once famously said that first-time Founders are obsessed with product and second time Founders are obsessed with distribution there's a lot of Truth in that from our experience in building step in to a peak user base of one million daily active users Yes you heard that right one million daily active users in crypto we were breaking Solana chains sorry but

not sorry we were flipping ethereum and Bitcoin on exchanges is that there are three things that worked really well for us and we kept repeating that iteratively in the buckets of content engagement and virality so content is broadly at the intersection of education and entertainment largely led by the horse's mouth so when I say that I mean Founders weekends Saturdays Sundays midnight our Founders were always there answering Community questions whether the app was crashing whether the app was speaking they were always there to answer users questions

we have probably one of the largest setups of customer care services in web 3 let alone in web 2. followed by engagement which is Twitter spaces Discord amas irel events basic things but done right at one point we had events going from all parts of the world so with the community on their own accord getting together and talking about step in onboarding users people creating the first nft wallets people purchasing their first nfts and this was happening across La Miami type B Taiwan Philippines Japan Melbourne UK London Australia everywhere across the world

and I'm missing cities such as the power of Engagement not to mention virality which includes drops influencers memes and this all is made possible by nfts however you all must have seen the anansin charts which show nft sales crashing and yes they are the monthly sales are down badly 50 on both eth and soul chains and I think this quarter we are down 35 percent versus q1 however there's one very interesting thing so while monthly sales volumes are down on the exchanges and chains the interaction between these wallets and nfts have actually gone up

so just possibly and probably it's not the nfts that are dead but speculative trading is so once again the focus is on utility versus speculation so where is this utility is it in the room with us right now let's see our biggest bond is that gaming will probably be one of the strongest on Rams to web3 we've seen what happened with step in there are things that worked really well for us in terms of Investments which of course leverages the biggest part of web3 in terms of strategy that it's not just gambling and luck people actually

use their intelligence because gambling just uses luck whereas strategizing uses intelligence and keep drawing people in again and again and the third thing is giving people experience what people would normally do which is walk jog or Run in real life we gave them an excuse to do that on chain and get Rewards the things that we've learned from step in is again how to improve on this economic cycle how to improve an asset Surplus and how to create a social game in web 3. and this is what we're going to do with gas hero you can obviously learn more on the Twitter gas hero official we just concluded a fabulous Twitter spaces educating about this base

and what web3 social game would look like and there is a contest that is going which is sharing a prize pool of 2 million gmts gmts are governance token where we are involving users to invite designs for what we call this gas here it's set in post-apocalyptic world I shine to say too much about it and we'll move on to the second biggest use case after gaming in web3 and that's undoubtedly art and entertainment as a startup founder one of the first questions people often ask is what problems are you solving and the answer often has to do with either saving people time or SP or saving people money but as it turns out looking at the

success of Netflix and Tick Tock right now there is much needed space to serve people's lonely lives and that is what entertainment is about that is what nft culture is about it not just and I'm guilty of that it's not just about composability and divisibility transparency those are just technical property of the RC71 structure those are just technical property of what nfds is about and yes as Builders as theirs we ought to know that but for retail it's what nft culture has come about Frank does such a good job of this nine gag does a good job of this and therefore nft culture is entertainment and that's a killer

feature and that is something that we've leveraged well for our second product which is more so using AI we have now launched a tool called GN on our nft Marketplace and launch pad GNT stands for generative nft tools there are in in the in a few months of launch there are close to 900 000 AIG Cai generated content aigc images already live on our platform so essentially you can go from an idea to nft projects in minutes and deploy it on chain using gnd and famine process on more once again you can learn more on Atmore official on our Twitter and there is once again a 120k GMC contest going live in relation to how you can create

these images moving on there are several emergent use cases we've all seen what can happen in music with Rihanna and Coachella dedicating artifact did with virtual fashion banksy's done amazing things with physical art American Cancer Society recently did fundraise University of California is issuing degrees in trialing on nfts in India there are police complaints being launched as nfts yes there is examples of real estate house ownership being trialled and piloted in some states protection and enforcements of Ip and lvmh recently introduced a traceability certificate in nfts admittedly these are very very very

small use cases right now very small in numbers and there's a lot of controversy complaints um but then I don't know if how many of you are young enough to remember this but when Google acquired YouTube and YouTube was big enough back then that also was a big controversial decision that would YouTube lead to piracy would there be video constraints would there be IP constraints and and we know where YouTube stands today so if there are complaints like there are about crypto and nfts I think that's a good thing I think we're doing something right to ruffle feathers in traditional circles and this leads me to what are

conclusively potential four major applications that I believe that nfts could contribute in I broadly classified these into four segments the first one is the frontier of building a community I call it pre-launch there was a time when AAA games would just post banner for giveaways on websites in web 2 and that is how they started building communities nfts are a very good Corolla rated ad on how you can allow Community to participate in your product pre-launch the second one is where founding team has a direct connect with users and

Community it allows them to build platform one-on-one without spending flashy millions of dollars and celebrity endorsements and this is what christics and all often talks about the cold start problem and nfts really allow you to build community without spending big the third one is the shift of tokenomics leading to nft economics more and more game designers are realizing that just solely relying on speculative demand and Supply faucets and things of token in the game may not be sustainable what maybe people don't actually realize it's that faucet sings token

all of this these Concepts have actually come from Big traditional web 2 games these are not Concepts that web3 birthed out of speculation and this is the reason to build sustainability into it now there are models that are coming with nft factories where the nfts uh where the Genesis nfts are given away free and then more and more newer drops happen to the Genesis holders and there is some thinking going on how many collections are good enough number of Collections and I think a figure of five collections over a space of 12 months is the current Trend but then we are to see and last but not the least where

Performance Marketing will constantly swerve towards this hybrid model between web to and web 3 where there will be interoperability between these two games so often Performance Marketing is thought to be something like you spend dollar three dollars on a user in a whole in the hope that they would spend four dollars back actually it's not it's about spending three hundred dollars on Thousand users so then one of them or few of them would actually spend one thousand dollars on your games in web 2 games whales are called as people who spend a thousand dollars in the whole year and then towards the high end of course you have ten thousand hundred thousand a

million fortunately unfortunately in crypto we already have bigger whales people would easily spend a thousand dollars which is roughly 0.5 each in in a in a heartbeat however to monetize these wheels and yet grow the community to a mass adoption needs newer models and which is why there could potentially exist the Confluence of web 2 and web 3 where you monetize these Wills using web 3 tactics in rare nft drops in web3 but also develop a model of users playing your game for good experiences like in gas hero using power social wealth

with simplified games for Game experience and web 2. and last but not the least I want to stress that I get asked this way too often there were two events that I spoke yesterday and again what about bear bull cycle how it's going to happen and often it just takes one step back to look at where we are so this is the crypto adoption cycle there are four big activities that are happening here so the market gap of crypto has actually shot up by 75 percent the social activity of actually shot up by 63 percent the dev activity which is potentially the strongest indicator here is 84 percent up and the startup

activity correspondingly 62 percent up so it's up only having said that we all know that people who can build in a bear Market it's hard to even imagine what they can pull off in a bull market so obviously NFA gyor but this is why I strongly believe in my team in our team at FSL who are constantly building production ready products like a game like an nft Marketplace like a DEX in last year alone we have dished out solid infrastructure and social consumer facing apps like step in like more door gas hero

so build and build apps which lead to this consumer moment in crypto this is a very good spectrum of what in web one web do would be considered in the spectrum of players Patron calls it and what it is evolved to Modern Times And we are very close to playing at that level and this is why I believe that at FSL we're heading towards in the right direction with step in with door with more with ai-led products like fairmint smack is our anti-jeet model for step in gas hero is our first web3 social game and gnd is our AI tool for creating nfts and images on more

you can learn more about all of these products on on Twitter and our Discord and for any feedback or collaborations you can hit me up here thank you sorry I didn't leave any space for questions it's probably only 30 seconds left so we can take that up in DM's cheers [Music] [Applause]