The NFT market may have cooled considerably, but companies that made big profits in boom times are reinvesting those profits into traditional and new media to put their eyes back on their creations.
Why is this important: NFTs don’t just sell images to people who like images. Owners place huge expectations on creators to continue to draw attention to the collection because that’s what drives the value of their digital items.
State of play: One NFT creator told us they do it because communities demanded it, despite some efforts to circumvent creator royalties that have, so far, funded the effort.
What they say: Dotta, executive at Magic Mountain, creators of the NFT Forgotten Runes Wizard Cult collection, tells Axios via email that NFT owners keep demanding more from creators. He said via email: “You must:
- “have a free mint
- “Airdrop new tokens to holders
- “build an MMO-metaverse
- “create a tv show
- “Create products
- “and take no royalties.”
The context: “Everything about this space commands attention,” Dotta says in an interview.
- For the teams that earn royalties, they earn money every time there is attention. If prices go down and people walk out, they still get returns on those sales.
- “Obviously everyone is happier when the price goes up,” he notes.
- But this need for attention is why teams that want to be a major NFT project can’t stop when the NFT is released. They need to post more things that keep their NFTs in the conversation.
Zoom in: For Rune Wizards, the secret sauce is tradition. Magic Machine has the global collection – the largest IP and the game world. They can provide an overview of their world, but each NFT wizard owner can create a story and personality for their specific wizard(s) .
- Although it’s more than he anticipated, this creative focus reflects what the founders of Magic Machine wanted. “My business partner and I have always wanted to create a world,” he said.
- Magic Machine has already released a comic about their universe, a TV show is coming, there should also be games and integrations with different virtual worlds.
The big picture: If someone does a TV show on, saysix specific NFT characters from a larger collection (there are 10,000 helpers), most people in the NFT world believe this would cause at least some price appreciation for the the whole collection.
- It hasn’t really been tested yet, of course, but Magic Machine is looking to take it even further, while still wary of securities regulators.
- “We worked with our legal counsel to develop a mechanism to return the royalties to our holders without violating securities laws,” he said. “I must be a little fuzzy on the details for now.”
Yes, but: Different teams have different approaches. Another big NFT project, Nouns, has a similar aesthetic to Wizards, but it functions less like a studio and more like a fund.
To note : He says the one thing that took a lot longer than he expected was social, just communicating with the Wizards community. He thought it would be something like 20% of his time. It’s more like 80%.
- “I think there’s something about high personal responsibility where you play the role of both the artist and the broker and the manager and the art gallery,” he says.
The bottom line: “If you think dropping an NFT collection will make you an instant millionaire, that’s not really the case. It’s more of a Faustian bargain,” he told us.