A huge bull run at the start of this year was followed by a sudden stop and 50% drop in prices in April. The crypto markets are at a fork in the road right now. People who have been interested in the space recently could tell us how the market is affecting mainstream adoption by looking at where they go next.
There have been stories about how the market for non-fungible tokens (NFTs) and social tokens has been linked to other parts of the crypto market. As more people outside of crypto become fans of the creators, we’re seeing that correlation lessen, even though we only have a small number of people. People who make things like social tokens may be able to protect them from the rest of the market if Bitcoin and Ether don’t rise out of their slumps.
On the fence: If this is a crypto bear market, how long can it go on?
The truth is that most people don’t care about the value of BTC or ETH, at least not yet. Because they want to get special benefits that are only available to people who buy tokens, they are paying for them.
There are unique opportunities for our business whether the next few months are good or bad. The near future is a very important time for the intersection of the creator and crypto economies. It doesn’t matter if the market brings in new people in good times or shakes out the “weak hands” in bad times.
As the NFTs cool down, they remove the weak hands.
People talk about crypto a lot more now that the crypto bull market and NFT boom started earlier this year. Creators and celebrities have taken up a lot of space with Bitcoin in the conversation. Today, the NFT market has cooled down a lot, and less big-name celebrities are making NFTs like we saw in March. NFTs may have been a short-lived trend, but will crypto change the way celebrities and their fans interact in the long run?
A few celebrities have used crypto to get quick money for endorsements or to make a quick buck, but it’s not very likely. But a lot of them are really looking into how crypto can help them connect with their fans and use the technology in new ways.
In the same vein: How NFTs and art will benefit from each other in the future, after the hype.
People who used crypto to get money will leave when the market goes down, just like many generations of crypto tourists. We’re still talking to a lot of really excited creators about how they can use NFTs in a bigger crypto project with their fans. Whether they’re big-name celebrities or creators with a smaller, but still very interested, audience, the foundation for creators and crypto has been built to withstand any market conditions.
A big victory for the “middle class.”
It’s not just big-name creators who are using crypto to build stronger relationships with their fans and own their financial relationships instead of letting Big Tech platforms set the rules. Creators with smaller and medium-sized followings have also looked into ways to connect with their fans through crypto and NFTs.
More than 50 million YouTubers, TikTok stars, bloggers, and other types of content creators are part of the “creator economy,” which is made up of people who make content. The industry is growing at a breakneck speed. Ad spend on influencer marketing alone reached $10 billion last year, not to mention the fact that creators are now able to trade directly with their fans. When people buy things from artists directly, crypto is becoming a more and more common way to do it.
Creators are still looking into the NFT space, even though the market has slowed down. The tech is still being developed to be more useful and functional. There are more and more people in crypto who have million-dollar “market cap” economies. And it’s not just people from the cryptosphere who are building crypto economies that work.
Alliestrasza, for example, is a Twitch streamer who mostly plays card games like Hearthstone and Magic: The Gathering Arena. She has 225,000 followers on the service. Alliestrasza has built a million-dollar business with her community of ALLIE social token holders by giving them unique benefits, like the chance to play in fan tournaments for different games.
As more people start making these kinds of economies that have their own value and functions, there will be less and less of a connection between social tokens that are designed for active community use and the broader, more volatile crypto market that can attract more speculators.
a lot of people are adopting and the people who made them
A lot of people who were first into crypto might not understand why this all is important. It is not a “peer-to-peer electronic cash system.” It is not a “global computer.” False, maybe they aren’t. But the only way to grow the crypto space in a big way is to bring in new people and help them see the value of the technology. Crypto is still at the beginning of its use curve. A person must either start using it today, which happens at a very slow pace. Or, the technology must build more user-friendly layers that are interesting to people who don’t know much about technology or how to use it.
Related: Understanding how financial services have changed over time.
There are a lot of obvious ways to meet people where they are, like meeting their favorite celebrities and creators. But there is a lot more to it than just being a creator or a celebrity. Everyone who could benefit from decentralization on the internet would be given a token. This would make it easier for people to use it.
Crypto and crypto-related projects will, of course, move faster or slower because of changes in the law, but this isn’t a surprise. Creators and celebrities from all over the world, but especially in the United States, will want to keep an eye on this area in the coming years. For the crypto platforms that help creators, Financial Action Task Force compliance is already a must because they help them make money.
As a follow-up, the FATF has proposed new rules for DeFi. They want to make sure that DeFi is following them
But as the technology and regulation come together and crypto is used in the experiences that people already have on the internet, billions of people will get to know the technology and learn more about its power and power.
This could be the rising tide we’ve all been waiting for, and it could happen now.
This article does not give you advice on how to invest or what to do. When making an investment or trading decision, readers should do their own research to make sure they’re making the best choice.
People who write here don’t always agree with or agree with Cointelegraph’s views and opinions on everything.
When Kevin Chou was the CEO and founder of Kabam, the company was sold for $1 billion. In 2018, he helped start a blockchain ecosystem called Rally. He was its CEO for two years, and he worked there for a long time. The company lets content creators, developers, and other people in the digital world run their own businesses. Chou later started Forte, which is a game-focused blockchain platform. He is now chairman of both Forte and Rally.