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Mason Nystrom Profile picture
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20 Oct, 12 tweets, 5 min read
In the world of Web3, Q3 2020 was defined by the growth of non-fungible tokens (NFTs) and the rise of community tokens.

Here's what you missed in Q3 and what you need to know going forward.👇🏻
Read the full Web3 Q3’20 report to learn about the various themes of this quarter including:

• The insane market growth of NFTs
• Culture investing
• Rise of community tokens
• Investable NFT categories
• Franchise tokens

Much more in the report!
messari.io/article/q3-202…
Cumulative lifetime NFT sales volume exceeded $130 million. Beyond the sheer volume of NFTs transacted, one metric is most telling.

The average NFT purchase price increased in Q3, reaching an avg of $161, the highest since the launch of CryptoPunks and Cryptokitties in 2017!
The number of users is also on the rise with OpenSea crossing the 25,000 user market and recording record volume in the month of Sept.
Wash trading has been an issue in the NFT sector.

In an effort to curb wash trading and increase sustainability, Rarible introduced buyer and seller fees on Sept 22, which already generate over $350,000 in fee revenue. Annualize this equates to nearly $5m in fee revenue.
The second major theme of the quarter was the rise of community tokens.

Platforms like Patreon and Substack already proved that individual creators can enjoy a great lifestyle supported by a few thousand loyal fans. a16z.com/2020/02/06/100…
Individuals whether they be artists, athletes, writers, or educators can leverage their personal brands to create business empires beyond their existing realms of expertise.

Creator tokens are a new mechanism for incentivizing a loyal fan base and monetizing content.
The foundation for community tokens and culture marketplaces is being paved:

• @withFND crossed 100k sales
• @ourZORA 400k sales in Sept
• OurZora @RAC token launch
• @TheMetaFactory launching $ROBOT
• @rally_io network launches $RLY
• @Collab_Land_ passes 40k users
There are notable tradeoffs to tokenizing one’s value such which I cover in the report, some of which include:
• Discounting one’s potential future worth
• Limitations of scaling particular benefits such as exclusive access to a creator/community
• Unknown legal consequences
As social/community tokens grow as an investable category, the most promising areas of investment will surround strong existing communities and well-established organizations.

messari.io/article/game-c…
Franchise tokens, such as Chiliz fan tokens provide a new form of brand loyalty and engagement. The top tokens are worth over $120 million in fully diluted market cap.
Within the Web 3 space, the largest addressable markets – and most lucrative investments – will be in platforms that democratize and create communities whether in
gaming, music, media, or another industry.

Read the report to see where Web3 is going in Q4
messari.io/article/q3-202…

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More from @masonnystrom

Mason Nystrom Profile picture
29 Sep
Non-fungible tokens (NFTs) as an investment category are earning broader recognition catalyzed by NFT liquidity mining.

As investors search for venture scale returns in the NFT sector, each category will provide different opportunities and tradeoffs. Thread below 🧵 Image
Investors like @AriDavidPaul, @WhaleShark_Pro, @ianjohnlee, & @jbrukh have shared great insights on the NFT landscape.

I’d like to expand on their mental models with a broad framework for how to categorize NFTs. messari.io/article/the-ar…
1️⃣ Individual NFTs and Collections

Ex: Axies, ENS domains, Trading Cards, Decentraland LAND, digital art

While individual NFTs may accrue notable value based on their utility or scarcity, this may not be the most effective strategy to capitalize on the growth of the NFT sector.
Read 8 tweets
Mason Nystrom Profile picture
23 Sep
The fuse connecting the NFT and DeFi worlds has been sparked by projects like Axie Infinity, Rarible, and MEME integrating DeFi concepts like liquidity mining and staking to build early networks.

NFTfi has facilitated over $60,000 in NFT-collateral backed loans between users. Image
Launched in May 2020, NFTfi is a protocol that enables users to deposit their NFTs as collateral in order to obtain an ETH denominated loan.

NFTfi is witnessing signs of early traction with over $3,500 in interest paid from over 60,000 in total platform loans. Image
Besides loans, I expect new iterations on DeFi inspired ideas like NFT staking, insurance, and fractionalized NFTs to gain steam in the coming year.

Read more about NFTfi and how NFT based projects will grow the DeFi pie.
messari.io/article/nfts-m…
Read 4 tweets
Mason Nystrom Profile picture
16 Sep
Rarible is a nonfungible token (NFT) marketplace where you can create, buy, and sell digital assets.

While the marketplace only launched in 2020, it’s already garnered ~$6 million in total platform sales. 🧵 Image
The war for NFT supremacy is underway – read the full analysis to find out if RARI is a rare opportunity or an overhyped governance token.
messari.io/article/a-rari…
Rarible's growth corresponds with the launch of RARI – the platform's governance token – and Rarible's marketplace liquidity mining program.

is designed to reward platform users – buyers and sellers – with the ability to eventually govern the marketplace and trading fees.
Read 5 tweets
Mason Nystrom Profile picture
9 Sep
The evolution of crypto primitives is happening at breakneck speed. Primitives like liquidity mining & social tokens – representing individuals and human capital – are now converging.

One social token, WHALE now has a market cap of $16m backed by a $1m portfolio of NFTs.🧵 Image
Dive deeper into WHALE and NFT liquidity mining in the full piece! messari.io/article/whale-…
tokens are indirectly underpinned by all of @WhaleShark_Pro's NFT assets, held in an address known as “The Vault” and are actively managed by WhaleShark.

@TheSandboxGame NFTs account for about 50% of all assets in the Vault. Next, are SuperRare(15%) and Gods Unchained(9%) Image
Read 7 tweets
Mason Nystrom Profile picture
2 Sep
One project at the intersection of sports and crypto is Chiliz(CHZ), a firm building the Chiliz exchange and the Socios fan engagement platform. Chiliz issues fan tokens – brand loyalty tokens – in partnership with professional football clubs which have accrued significant value. Image
Fan tokens currently enable token owners to vote in polls and access exclusive rewards, such as signed merchandise.

Interestingly, Juventus (JUV) and Paris Saint Germain (PSG) trade at 14% and 10%, respectively, to the valuations of the professional football clubs! Image
Chiliz has continued to grow its fan token offerings over the past few months. On August 25, Chiliz sold $730,000 of fan tokens in 15 minutes for three different football clubs.
Read 4 tweets
Mason Nystrom Profile picture
31 Aug
Do you want to get a job in crypto?

Here’s a list of actionable advice for newcomers, students, or anyone interested in transitioning into the crypto industry. 🧵
messari.io/article/how-to…
1/ There are only two types of advice:
Advice someone passes on because it worked for them or the humbled ever-present advice learned from regret.

Both are valuable, but you should only replicate the former.
2/ Commit

Think of this advice like a menu, pick a couple of options that sound appetizing to you, and commit to them.

Consistency matters.
Read 26 tweets

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