“Computers are useless,” Pablo Picasso exclaimed over 50 years ago. “They can only give you the answer.” There is no doubt that he will pay homage to today’s alliance of computer programs, technology companies and digital artists coming together to create non-fungible tokens (NFTs). It’s a fast-evolving and potentially very dangerous world for filmmakers, producers, and others looking for new ways to raise money, but research it carefully, and take a good look at recent history. is needed.
NFTs are digital art and images, often broken up into bite-sized tokens and relying on blockchain technology to prove ownership. The explosion of interest and speculation around NFTs and the broader cryptocurrency frenzy that overheated over the past decade has collapsed dramatically over the past six months, wiping out more than $2 trillion. The bursting bubble of digital assets and decentralized finance (DeFi) has received serious attention, but given that by mid-2021 more than 16% of the American population has embraced the cryptocurrency craze, millions of It is also painful for human investors.
Everyone consulted for this report had no problem with the underlying robustness of blockchain technology—essentially a digital ledger of transactions replicated and distributed across a network of computer systems. , its effectiveness depends on how it is used.blockchain and Cryptocurrency Two distinct technologies are inherently linked. Cryptocurrencies are also decentralized digital systems, but they are designed to enable transactions in digital or virtual currencies, so they work via a blockchain.
Among many crypto skeptics is BlackRock founder Larry Fink. In his 2017, he quipped, “Bitcoin shows how much demand there is in the world for money laundering.”
Digital asset evangelists such as Silicon Valley mogul Marc Andreessen, who is responsible for backing multiple cryptocurrency startups, have made revisionist claims that all the ideas that failed in the dot-com bubble still work. is famous for The recent bubble economy burst does not support Andreessen’s theory. Cryptocurrencies, not to mention currencies, that underlie the financial structure will collapse like dominoes, never to see the digital light again.
Even when currencies are built to create stability, as is the case with TerraUSD and Luna, things can get dicey. Terra’s value was pegged at $1, which it could theoretically never drop below and was held at that level by its sister coin, Luna. If Terra’s price exceeded $1, investors could take their Luna coins out of circulation (a practice called burn) in exchange for new his TerraUSD coins, bringing the cost back to $1. Luna’s price was supposed to rise as the coin became increasingly scarce.
However, the system works only if the luna has real values. After its launch in 2019, its price skyrocketed, peaking at $120 in April, partly due to aggressive offers to pay 20% interest on savings held using the currency. rice field. But once the crash began, investors began withdrawing cash to cover losses elsewhere…and Luna became a crater. Luna’s price skyrocketed as it triggered a “death spiral” and people switched his Terra to Luna. Every redemption round simply witnessed Luna rolling lower and lower. In just a few weeks, the value of Lunacoin has fallen by a fraction of the value. The whole game is up.
“Whatever the fate of decentralized cryptocurrencies, the form of crypto and blockchain technology is here to stay. The challenge, he said, is multifaceted, but sophisticated regulation calls for it. When an industry calls for regulation, it usually seeks to minimize scrutiny while coveting the legitimacy that comes with it. What is the biggest risk regulators should be wary of? , giving official authority to the cryptocurrency industry.”
This is a thorny conundrum for filmmakers flirting with the market. “Let’s be honest — celebrity-driven cryptocurrencies and NFTs The fraud market has collapsed,” says Oscar-winning writer and producer James Sheamus. “To paraphrase Matt Damon, ‘luck doesn’t favor the gullible.’ That’s probably why the average selling price of NFTs has dropped 92% in the last six months. No, some of these technologies may still have legitimate uses, such as digital rights management, loyalty and residual tracking, as well as hyper-financialized derivative products for speculators, gamblers and hustlers. is on the market, at a special price, provably one-of-a-kind, and digitally what it’s going to do, the potential usefulness of these technologies can’t be dismissed just yet. ”
Taking Schamus’ cautious upward note one step further, it highlights the strong intersection between NFTs and the world of video games, rather than directly into live-action film or television (animation is another matter, though). Web 3.0 blogger and digital entrepreneur James K. Wight said: “The clear message is that you buy to have fun and give users a sense of completion.
Producers have long been drawn to potential new funding and creative product opportunities, but there lies part of the problem. . “So they are at risk of believing their own bullshit, and thus the bullshit of others.”
But some nifty growers have made it a business to kick the tires and investigate feeding crazes first-hand. Red and Black’s award-winning film producer and game developer John Giwa-Amu has trekked from Wales to San Francisco to attend his Game Developers Conference this spring. He had already had the unthrilling experience of trying to turn his first feature, “White Little Lies,” into his NFT opportunity, which was “a complete waste of time.”
“Once you get past the gold rush hype and the 20s, [then] Billionaires find this market very young, suffering from big mistakes and lacking a basic understanding of how finance and risk work. The thing is that IP in the form of a digital canvas is the tangible element behind NFTs, but the quality of that creative work really matters,” he says.
Quality filmmakers have been lured by the opportunity, but are approaching the burgeoning sector with enough caution to keep their shirts. Canadian animation studio StudioNX saw a surge in demand when it launched 1,111 NFTS at $100 per token on Magic Eden via the Solana network and combined animated series “Gorecats” . The first round of NFT he sold out within 45 seconds. Since that strong start, founder Adam Jeffcourt has said, “We hired a financial payments manager to help us deal with volatility and changing values. Never mind rock solid finances! I have great potential. But the ups and downs have made me want to involve just a part of our business instead of keeping it all to myself.” It emphasizes the importance of being backed by good storytelling and, as a result, more engaging.”
As we scratch the surface of game developers turned Web 3.0 entrepreneurs, there’s a lot of creative work underway that’s already redefining what the Metaverse can offer us. is. Developed by award-winning game and augmented reality (AR) developer Tiny Rebel Games, the Petaverse Network is the first cross-chain platform to create the next generation of ‘immortal’ pets across the metaverse. “Cool things are possible,” says co-founder Susan Cummings. “Cats do things! You can run cats in space and make them funny.” Petaverse’s virtual pet creation works in games, AR, VR, wearables, and social. According to Cummings, their pets evolved based on specific DNA traits and the nature of their bonds with humans.
A primary motivation for Cummings and her partner, Lee Cummings, was the wasteland of once-beloved but abandoned virtual pets over the years. Neopets, Tamagotchis, not to mention 24 million of her Nintendogs have been bought, loved and discarded as technology moves inexorably. upon. “We love the idea of it being a digital heirloom that anyone can own and carry around, that will still be relevant 30 years later, and that they can pass on to their grandchildren.”
By combining gaming, XR, and Web 3.0, and housing projects via the Polygon Platform on the Ethereum blockchain, Petaverse defines open standards and allows other projects to collaborate and build new experiences with virtual pets. I made it “This is about creating an open, shared community that benefits from an easy-to-use transportation system,” Cummings emphasizes. That philosophy is a far cry from a winner embracing all the competition you see in Hollywood and Silicon Valley.
But while a few smaller shingles have found ways to tame and use cryptocurrencies and NFTs, it remains too precarious to become mainstream in the entertainment business until the next big round of funding. I have too many questions.