NFT is on the rise again, and it’s coming for us.
In 2021, at a Christie’s auction, an NFT of Beeple’s work was sold for $69 million and as everyone was fanaticizing this deal, one year later, Snoop dog was planning to turn his Death Row Records into an NFT label. Moreover, McDonald’s also joined the league and wanted to use NFTs in virtual restaurants that can deliver real food. Hollywood isn’t far behind in the NFT race either; recently, Reese Witherspoon’s Hello Sunshine signed a contract with World of Women to turn its characters into TV shows and movies.
Why are NFTs important, and how do they work?
The non-fungible token has started to spread in the entertainment world as they offer the creators a new and unique way to interact with their audiences. The creators can also raise money and create new distribution channels for their work. Having said that, many people still don’t know what an NFT is.
Director and producer Rick Dugdale of the NFT, starring Anthony Hopkins said that many current contracts are freezing NFT rights. This is because when digital artworks are posted, downloaded, and reposted, they often cut out the artist. According to the contract between Hello Sunshine with the World of Women, female artists will collectively create NFTs. The first collection of 10,000 releases was a big hit and sold overnight. The next one is hoped to be launched this year.
An NFT is more than just digital artwork; it’s a tool that can create the next web iteration. True NFT believers think NFT can be a way to create an online ecosystem where the work represents physical and digital things. According to the co-founder and co-CEO of the NFT platform Curio, NFT is a gateway to web3.
He further added that previously ownership rested with platforms such as Facebook and google, but now, users can retain ownership. Hollywood TV and film creators are also using NFT to earn money and create a fan base before the launch of their projects. This spring an animated series of “The Glue Factory” will release. The six-episode series is a comedy about the lives of mistreated horses that now live in a world where they set the rules. The Centaur Studios released 10,000 NFTs last August, and they sold like hot buns. The cost of each NFT was $300, and $315k of the total proceeds was donated to a rescue organization.
Through a server, the token holders were able to participate in several writing assignments such as Which posters should hang in the windows of the horses’ doctor’s office? The staff of the showrunner reviewed the idea on a video chat in front of the same audience of token holders. What makes The Glue Factory unique is the engagement of the NFT holders vested in the project. This is encouraging a network of streamers to take an interest in the show.
If the show does well the initial token can be sold at a higher price to other buyers who eagerly want to be a part of the community.