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NFTs, Web 3 & The Creator Economy (The Promise, The Pitfalls, The Hype) - Peter Csathy's February Newsletter

Peter Csathy, Creative Media
Peter Csathy, Creative Media
Talk of NFTs, Web 3, DAOs, the blockchain, and the Metaverse is all around us (and frequently overwhelming). My bottom line? I absolutely believe in the promise of Web 3, NFTs and DAOs for the world of media and entertainment (and creators/artists and audiences/fans in it). But I also believe there’s much grift and pure greed out there, so buyer beware in these early “Wild West” days. The “real” opportunities will be those that deliver lasting value and exclusive benefits. This newsletter focuses on Web3’s promise … and pitfalls. And both sides are presented (the bulls and bears) - so that you can perhaps think differently and act smarter.

THE PROMISE, THE HYPE & THE OPPORTUNITIES THAT REALLY MATTER - HERE'S MY "TAKE"
PFPs like CryptoPunks and Bored Apes alone do not a smart NFT investment make. Nor do investments in virtual worlds like Decentraland and SuperWorld (no matter how much they try to cloak themselves in bringing a social impact element to the mix). I mean, where are the ongoing benefits of “membership” into those Web 3 communities? And where are the barriers to entry/moats in a world of infinite virtual possibilities? Yes, all of those forms of “NFTs” give you immediate “flex” - and promise ongoing value driven by the community itself. But, at this moment, they scream of “flipping” as being the primary motivation to hold those tokens - re-selling at frequently astronomical numbers. “Brother, can you spare a few hundred thousand?” (And I do mean “brother” here. Have you noticed how male-dominated Web 3 is at this point? That’s a fundamental problem of inclusion that must be addressed in all its forms to achieve Web3’s core democratized vision.
Here’s what I like and fundamentally believe in - i.e., directly investing in (and supporting) artists, creators, musicians, experiences - even major sports teams (prediction: that will happen this year). I believe those kinds of Web 3 opportunities via “NFTs” and DAOs certainly may be smart investments for a variety of reasons (and not just financial). And I plan to be actively involved in those decentralized worlds.
Two obvious examples here: (1) in the world of music, superfans having an opportunity, for the first time, to financially support and promote their favorite artists and take a fractional share of the value/earnings they create (and even potential fractional ownership), not to mention ongoing meaningful “experiential” benefits that flow to those superfans only; and (2) in the world of film/television/games, producers having an opportunity, for the first time, to achieve alternative financing via an audience fueled by passion and shared community (and give the audience real “ownership” - in all its forms, not just financial - as well as ongoing exclusive community benefits).
DJ Steve Aoki’s new token-based VIP “membership club” (the “A0K1VERSE”) points the way - as does UK-based Ditto Music’s Opulous NFT platform (which enables fractional ownership of music IP and ongoing earnings). Meanwhile, while I like the concept (and analyzed the opportunity myself), Coachella’s new limited edition of 10 NFTs fall short with less than exciting ongoing - and differentiated - exclusive benefits. It feels more like a quick money grab that was cobbled together. A long-lasting “community” with shared incentives and real differentiated value (in all its forms, including potential fractional ownership) is what I believe ultimately “matters” most. I expand on my views in my recent interview at Burbank’s “Tech Talks” (see below).
For these kinds of lasting, real Web 3 opportunities, don’t get too caught up in “NFT” terminology - which understandably connotes a certain level of market froth to many at this point. I think it is likely that the kind of lasting blockchain-powered opportunities in which I believe ultimately will go by a different name. And one more critical thing - these are my perspectives only. NOT financial advice.
In addition to my perspectives (including per my video below), check out the other important viewpoints that range the gamut - via my interviews with some of the world’s leading VC’s, experts and voices in the space - and via key videos I have curated for you. Lots of great material below. The promise. The hype. The risks. The impact on our lives and society in general. Once you watch and/or listen to these (both audio and video podcasts are available below), your understanding of Web3’s promise and pitfalls will be expanded. And likely transformed. I urge you to spend some real time with this content. There’s a lot here - all of which is important and valuable.
And if you want my “take” on it all, reach out to me at peter@creatv.media and listen to my “Fearless Media” podcast.
MY EXPANDED "TAKES" On Web 3, NFTs, DAOs, The Metaverse
I discuss it all in my recent interview at the City of Burbank’s “Tech Talks” - and the impact on Creators, Artists and the media, music and entertainment business in general.
Web3, NFTs, DAOs & The Metaverse (& How They Will Transform Media & Entertainment): Peter Csathy Q&A
Web3, NFTs, DAOs & The Metaverse (& How They Will Transform Media & Entertainment): Peter Csathy Q&A
LEADING VC SEBASTIAN PARK Discusses the Exploding Creator Economy, NFTs & Web 3
Check out my special session with Sebastian Park of BITKRAFT Ventures, one of the leading VCs in the world of blockchain, Web 3 and games. Sebastian gives a compelling presentation of the Creator Economy (which he calls “The 2nd Renaissance”). It is absolutely worth watching.
Leading VC Sebastian Park of BITKRAFT discusses NFTs, DeFi & Media Transformed
Leading VC Sebastian Park of BITKRAFT discusses NFTs, DeFi & Media Transformed
GALAXY INTERACTIVE'S SAM ENGLEBARDT Discusses His Fund's Focus (& Web 3's Impact on our Lives ... and Our Evolution)
Sam Englebardt, General Partner at leading interactive entertainment and Web 3-focused venture fund Galaxy Interactive, joins me for a fascinating and sometimes sobering “take” on how Web 3 will transform our lives in the decades to come. He also gives a “sneak peek” into his firm’s focus for 2022 and beyond.
Web3, The Metaverse (& Where Society Goes From Here): Galaxy Interactive's Sam Englebardt Interview
Web3, The Metaverse (& Where Society Goes From Here): Galaxy Interactive's Sam Englebardt Interview
KOJI - MY COMPANY TO WATCH in the Creator Economy
Koji - which I call the super app for the Creator Economy - just closed a $20 million Series B round of financing. And there’s a reason why both BITKRAFT Ventures and Galaxy Interactive participated in it and raised their stakes in the company. In this video, co-founder & CEO Dmitry Shapiro - one of the most visionary tech entrepreneurs of our time - gives an overview and live demo.
KOJI: The Super App for The Creator Economy - Interview & Koji Demo with CEO Dmitry Shapiro
KOJI: The Super App for The Creator Economy - Interview & Koji Demo with CEO Dmitry Shapiro
LEADING TECH EXPERT ARUN MAINI Discusses the Metaverse (& His Fears About It)
Watch my interview with this leading tech YouTuber - who boasts 10 million subscribers for a reason. He is smart. And very thoughtful. Here we discuss the impact of the metaverse and technology on our lives/our souls. The conversation will make you think.
Tech expert Arun Maini (@Mrwhosetheboss 10MM subs on YouTube) discusses the Metaverse
Tech expert Arun Maini (@Mrwhosetheboss 10MM subs on YouTube) discusses the Metaverse
CRYPTOPUNKS RAPPER SPOTTIE WiFI Discusses how NFTs will Transform the Music Industry
Be prepared for an interview unlike any other. No matter what you think of SPOTTIE WiFi (and I myself am skeptical), he is very real indeed to a whole new generation of crypto investors. And he points the way to more obvious Web3 direct artist/fan patronage, engagement and value creation/sharing that is relevant to all artists. DJ Steve Aoki’s new “A0K1VERSE” membership community represents a more obvious “real world” example.
CryptoPunks rapper SPOTTIE WIFI discusses how NFTs will transform the music industry
CryptoPunks rapper SPOTTIE WIFI discusses how NFTs will transform the music industry
ARUN MAINI gives the NFT Contrarian Case
Arun is one of the smartest young voices in the world of tech. This brief video is worth watching for its surprising depth. It may challenge your assumptions, and it may help you formulate your own counter-arguments. Doesn’t mean I’m not a believer in so-called NFTs (I am, in the manner I discuss above). Rather, it means that all of us should continuously challenge our assumptions to become smarter in the decisions we make.
Arun Maini (@Mrwhosetheboss) explains NFTs - and gives the Contrarian's view
Arun Maini (@Mrwhosetheboss) explains NFTs - and gives the Contrarian's view
YOUTUBER DAN OLSON (aka Folding Ideas) Gives an Even More Contrarian's Case
This video, which has now been viewed nearly 5 million times, has made the rounds across crytpo/blockchain circles and is the talk of the Web3 town. It is long (over 2 hours). But it is worth every minute, so long as you smooth out some of its vitriol and rough edges for yourself. Important to listen to the most contrarian “bears” out there - not just the hard-core believers. So buckle up, and be ready for a bumpy ride (and keep an open mind).
Line Goes Up – The Problem With NFTs
Line Goes Up – The Problem With NFTs
REACH OUT TO ME TO GET MY CUSTOMIZED, PERSONALIZED "TAKE"
And if you want my “take” on it all - for yourself and/or to educate your teams - reach out to me at peter@creatv.media and listen to my “Fearless Media” podcast. I am regularly asked to give exclusive, customized presentations both in person and via Zoom … no NFT needed!
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Peter Csathy, Creative Media
Peter Csathy, Creative Media @pcsathy

Peter Csathy's monthly newsletter about the future of media, music, entertainment and tech. Check out my advisory firm, Creative Media (creatv.media), and reach out to me to discuss your business or legal project or for 1-1 coaching (and check out my "Fearless Media" and "The Story Behind The Song" podcasts available on all podcast networks).

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