Memo: OpenSea v. Coinbase

 

One venture capital firm, two investments: when Coinbase decided to invest in the development of an NFT marketplace for its estimated 70 million users, Andreessen-Horowitz’s competing investment was probably surprised. It’s rare for two portfolio companies to go head-to-head in such a manner. The numbers are in Coinbase’s favor, but the NFT trade is synonymous with OpenSea.

Just 12 months ago, monthly trade volume was around $1 million; in August, that number reached $3.4 billion. Coinbase surely felt that it was missing out on trade volume and an opportunity to democratize the NFT trade. Its relative size provides a few opportunities that OpenSea cannot yet account for. Imagine what would happen to the NFT trade if Coinbase temporarily covered gas fees of new traders, for instance. Gas is the limiting factor for many interested in acquiring NFTs.

Gas is the fee, paid in ethereum cryptocurrency, that is required to finalize a transaction on the blockchain. For NFT buyers on OpenSea, the extra fees can add up. In this way, Coinbase’s volume of new buyers could negatively impact OpenSea if the cost of doing business is cheaper. It can also benefit OpenSea. With increased trading volume, certain projects would become more marketable on the OpenSea. But this isn’t just a platform play: Coinbase seems to be serious about its interests in arts and entertainment.

Last week, Coinbase announced a partnership with Steve Stoute and UnitedMasters, signaling its growing investment in the arts and entertainment space. Another signal was just announced. Coinbase is planning an NFT marketplace that will launch by the end of the year. The waitlist is open.

Details are scarce, but as TechCrunch reports, the platform will include social elements including opportunities for “conversations and discovery”, according to the Coinbase press release. The goal is to make it easier to mint, purchase and find NFTs. Right now, competitors in addition to OpenSea include Binance and FTX. Shopify is also wading into NFT territory by making it possible for all Shopify merchants to mint and sell their own NFTs. Coinbase now wants to stake its claim to a space that has thus far been the story of OpenSea.

Coinbase’s launch into NFTs makes sense for the company, which facilitates buying and trading of crypto. Crypto and NFTs are closely tied together and Coinbase, now public, needs to explore ways to make new revenue. It’s also the natural progression of the onset of Web3, the next era of the internet that exists within digital worlds with digital currencies. Online dealings can start and end entirely online – it’s no longer a means to an offline end. As a result, new cultural norms and consumer habits are forming, as 2PM explained in “The Digital Country Club”, online groups are forming around NFTs and crypto and you’re either in or you’re out.

Загородные клубы всегда были местом, где члены клуба могли демонстрировать свой статус и общаться в кругу избранных. NFT делают это возможным для поколения, привязанного к интернету. На разных платформах это проявляется по-разному. CryptoPunks, коллекция уникальных аватаров персонажей на блокчейне Ethereum, теперь позволяет пользователям сдавать свои аватары в аренду, по сути, открывая поток доходов и одновременно предоставляя доступ на ограниченное время новичкам. Идея о том, что НФТ как класс активов потерпел крах, на данный момент просто смехотворна.

Coinbase’s launch will normalize this new reality for more people. As a crypto platform, it will initially cater to the already initiated. But if its social component is thriving enough, that and reduced trading fees could be a powerful way to pull in newcomers to the NFT trade, of which OpenSea could position itself the Saks Fifth Avenue to Coinbase’s Macy’s. The two portfolio companies could benefit one another after all.

By Web Smith | Editor: Hilary Milnes | Art: Christina Williams

Краткая информация для участников: CLUB EBITDA

Ритейл - это спорт для EBITDA. В 2019 году на конференции Shopify Plus в Нью-Йорке относительно неизвестный иностранный бренд рассказывал о важности здорового роста и прибыльности. Тогда все внимание было приковано к американским брендам, но именно основатель и генеральный директор Daily Paper Хуссейн Сулейман покорил толпу преклоняющихся перед ним американских предпринимателей. Мы с ним поговорили после его выступления, и он оставил мне цитату, которая перекликается с наиболее запомнившейся строчкой из "Социальной сети":

Этот краткий обзор предназначен исключительно для Исполнительные членыЧтобы упростить членство, вы можете нажать на кнопку ниже и получить доступ к сотням отчетов, нашему списку DTC Power List и другим инструментам, которые помогут вам принимать решения на высоком уровне.

Присоединяйтесь здесь

Memo: Squid Game Effect

Netflix’s Squid Game is the platform’s newest hit: the show, which premiered mid-September, is on track to outpace Bridgerton and The Witcher to become its most-sampled original series. The show debuted on Netflix on September 17 and by October 1, it was parodied on Black Twitter with an hilarious rendition: If Black People were in Squid Game. And, well, that meant that I finally had to watch it. Those are the rules.

The South Korean drama about a group of indebted citizens subjected to playing life-threatening games in order to win money, has also become a cultural phenomenon, showing just how much Netflix’s bets on original series with no pre-existed IP or fanbase can pay off. The Netflix phenomenon has moved on to its retail phase.

First, there’s the official merch. Netflix’s online store is now selling T-shirts and sweatshirts inspired by the show, in an attempt to wrangle some of the enthusiasm around the series like it’s done with Stranger Things in the past. But Netflix is only capturing a small portion of the excitement. Pop-ups in Paris and Seoul that are hosting games inspired by the show have drawn fans willing to line up, and in some cases fight each other, to get in. Lacy Maguire of Vogue Business quantified more of the fashion interest:

Squid Game’s influence is already taking hold, according to data from Lyst, as seen by Vogue Business. While the show’s style is more muted than Bridgerton, consumers are already buying into signature costumes. Within days of its release, global searches for retro-inspired tracksuits (+97 per cent), white slip-on sneakers (+145 per cent), red boiler suits (+62 per cent) and white numbered T-shirts (+35 per cent) have all spiked. Vans are the most viewed slip-on sneakers over the past week, while demand for the color teal is up 130 per cent week-on-week.

Additionally, Squid Game is expected to be one of the most popular Halloween costumes this season, with sales of white Vans slip-on sneakers and red boilersuits, worn by players and guards in the show, spiking. According to data from Sole Supplier, Vans sales were up 7,800% while searches were up 92%, according to Lyst.

The lasting impact of Squid Game is still up in the air. Can this become a franchise? Or will it stay contained to one season? With season two yet to be confirmed, the biggest takeaway is that foreign shows with subtitles have legs in markets, even those thought to be averse to subtitles. The K-drama has landed in the US, meaning the gate is open to explore a vast library of content. The stars are going to rise with it. Already, Louis Vuitton has signed Ho Yeon Jung as one of its ambassadors following her time on the show. Whether there’s a season two or not is almost beside the point. Netflix has shown that even up against Disney+ and its rights to many franchises, an original show can land and there’s money to be made when it does.

By Web Smith | Editor: Hilary Milnes | About 2PM