Why Crypto Coven may be the next BAYC?
A case study for PFP NFT
Since Christmas, I’ve fallen in love with one NFT project: Crypto Coven.
Especially, I see Crypto Coven is on its way to be the next BAYC, becoming a phenomenal project in NFT history and modern culture. Here is why:
PFP NFT is Web3 Native IP
As an asset class, NFT can be further divided into four categories:
PFP (project profile pictures) : crypto punk, bayc, crypto coven, usually have 8888/10000 code-generated artworks for people to use it as profile pictures.
Digital Art: 1/1 or multiple editions/series of one artist, besides opensea, usually trading on super rare and foundations
Game assets: pets and items in axies, you can use them to play in blockchain games like Axies and generate income for staking/playing them
Metaverse real assets: land on decentraland/cryptovoxels or sandbox.
Interestingly, we can find traditional asset examples of the above 2~4, like traditional art piece, game assets, and real life lands. They also some how can be valued in similar models. But what are the use case of PFPs beside profile picture? What’s supporting the value proposition of these projects beside pure speculation?
My answer is they are creating a paradigm shift of story telling in our times, which is building a Web3 IP and universe. Think about marvel but built and operated in a more decentralized manner. What if you can own a piece of marvel IP, participate in its future story telling as an OG, and enjoying a piece of its generated income?
Now that’s what PFP NFTs are set out to do since blockchain provides a global permissionless layer, not only for assets investment and trading, but also community building and story telling.
Establishing a Web3 Native Universe is the ultimate success metric
Achieving a universe is the ultimate success metric for IP building because it has network effects which become a moat for the IP itself, and that’s what Disney has been so good at with Mickey mouse, marvel and now star wars.
Now, think about Disney in Web3, which is more decentralized, you and I still have a chance to participate as more than a pure consumer, that’s the Web3 native universe:
A Web3 native universe is like marvel cinematic universe, except 1) a multi-media setting comparing to MCU’s cinematic oriented universe; 2) resonates with global Web3 community on values and narratives, and 3) the building process is more decentralized, a hybrid model of core team effort and community participation.
BAYC is, to some degree, more successful than other PFPs in the NFT scene with its core story settings, community recognition, continuous meetups/IRL events, and brand collaborations.
Community is the moat for Web3 Native Universe building
Community participation is the most unique factor in Web3 native universe building comparing to its older precedents in Web2 world. It is where a native Web3 team may build its moat while Web2 Co.s. struggle to learn the difference between building a top down IP and building a universe from bottom up.
A centralized company will not beat out a properly incentivized global community of devs, creators, writers and designers united on a unique cultural value proposition and narrative.
How to attract, nurture and incentive such community, though, is a question for every PFP NFT project core team.
Crypto coven now has everything needed to build such a universe :
An unique cultural value proposition for Web3 natives, enthusiasts which resonates with our current time: concept of Web3, sovereign individual and celebration of feminine aesthetic is growing rapidly in recognition;
Recognizable art to execute the vision and values, with attractive story telling elements such as weird wilds and with archetypes of powers;
“Lore, not floor” : focus on long term growth and narrative building instead of short time price speculation;
Takes community into heart and already attracted a strong and healthy community: a bunch of community-oriented projects/activities already took place, such as a Web3 library, a discord community game (0xCuriousQuests), a bookclub focusing on fantasy and sci-fi, regular discord workshops on web3 educational topics such as wallet safety, a valentine gift project by community members (witchhearts.com), etc.
Such being said, Crypto Coven is still starting the universe building. Down the road, I’d look forward to its future developments on:
Launch of Weird wild: more setting is important for witches to develop its stories;
Community incentives: such as ecosystem grants and programs to keep attracting and incentivizing best Web3 creators join in the story telling process and building more tools;
Continuous execution focusing on building the narrative and increasing brand awareness from core team.
I believe crypto coven has great potentials and is on its road to become the next BAYC, and will look closely to how it develops its narrative in the next few months. If you are a witch, let me know!
Web 3.3
3 Macro news
mostly good news:
Fidelity launched their first spot bitcoin ETP in Europe with a fee of 75bps, making it the cheapest crypto ETP in world: https://etfstream.com/news/fidelity-enters-crypto-space-with-europe-s-cheapest-bitcoin-etp/
Stablecoin draft bill introduced in U.S. Congress, allows stablecoin issuance as long as in compliance with several banking-like regulations: https://gottheimer.house.gov/news/documentsingle.aspx?DocumentID=3020
Sources say the $1b El Salvador’s Bitcoin bond will be issued b/w Mar. 15~20, 2022
3 Community Projects
A space for grassroots, community-orientated, under-reported projects
Here and Now 4: https://www.thepassage.space/, an immersive digital art experience on tezos, totally community run, mostly by the founder (https://twitter.com/WideawakeBeets) , deeply loved by Tezos NFT community. You have to try it if you are of any interest to the space, the most innovative I’ve seen, totally under estimated and under priced comparing to NFTs on ETH.
Curious Quests: https://www.curiousquests.xyz/, a community @crypto coven project, discord-puzzle solving game. Try it if it is in your time zone (did not work for me but kudos for the innovation), it is free to play with great prizes.
Dope Wars: https://dopewars.gg/ a fair launch game on ETH layer 2s.
3 Notable development updates
A Bitcoin scaling solution got funded: https://github.com/fedimint;
Draft eip to get beacon state roots into the EVM -- required for beacon chain withdrawals which is intended to get into Shanghai upgrade: https://github.com/ethereum/EIPs/pull/4788
draft eip to get beacon state roots into the EVM -- required for beacon chain withdrawals github.com/ethereum/EIPs/… feedback welcome :) the intention is to get this into Shanghai
New governance primitives merged for Polkadot and Kusama: https://github.com/paritytech/substrate/pull/10195
