Culture is the new currency. For the first decade of cryptocurrency’s existence, investing in the space was relatively simple: You could buy bitcoin, ether, XRP, ADA or any of the thousands of more exotic alt-coins. Prices soared, prices flopped.
Then, something changed. In the last two years, ever since the awkward acronym “NFT” [for non-fungible token] went mainstream, crypto has seeped into every corner of our culture. Sports: NBA Top Shot racked up 1 million users. Art: Crypto was such a juggernaut that even Sotheby’s, founded in 1744, began auctioning NFTs. Pop culture: Celebrities like Jimmy Fallon, Madonna and Kevin Hart changed their Twitter avatars to cartoon apes.
“We’re seeing this convergence of culture, finance and technology,” says Jamie Burke, CEO of Outlier Ventures, a VC fund and accelerator. “It’s no longer just a technological paradigm shift. It’s no longer just a new financial system. It’s also a new way in which culture is made, consumed and distributed.”
For potential investors this represents an opportunity. An investment in crypto “culture” is a bet on the passions, hobbies and obsessions that regular people actually care about. “The average person doesn’t care about the underlying technology. They care about what it can do for them,” says Magdalena Kala, founder of venture fund Double Down. “When you look at the growing awareness of Web3,” says Kala, “it’s always tied to consumer culture.”
To find alpha, hunt for the passion. That’s essentially the investment thesis for Jarrod Dicker, partner at The Chernin Group (TCG) and a former vice president at The Washington Post. “When we look at investments we look at passion first and then say, how is this uniquely unlocked by crypto?”
He gives the example of music. “I have a ton of passion for music,” says Dicker. “Would I love to be a record label exec? Sure. But do I have any skills for that? No. I’m never going to get hired by Warner.” In today’s world of Web2, Dicker’s passion is just a wispy fantasy. But with Web3? He points to projects like Hume, a decentralized record label, that lets the community (through NFT ownership) find and grow musical talent.
Continue reading: https://www.yahoo.com/video/investing-web3-culture-entertainment-124402911.html
Then, something changed. In the last two years, ever since the awkward acronym “NFT” [for non-fungible token] went mainstream, crypto has seeped into every corner of our culture. Sports: NBA Top Shot racked up 1 million users. Art: Crypto was such a juggernaut that even Sotheby’s, founded in 1744, began auctioning NFTs. Pop culture: Celebrities like Jimmy Fallon, Madonna and Kevin Hart changed their Twitter avatars to cartoon apes.
“We’re seeing this convergence of culture, finance and technology,” says Jamie Burke, CEO of Outlier Ventures, a VC fund and accelerator. “It’s no longer just a technological paradigm shift. It’s no longer just a new financial system. It’s also a new way in which culture is made, consumed and distributed.”
For potential investors this represents an opportunity. An investment in crypto “culture” is a bet on the passions, hobbies and obsessions that regular people actually care about. “The average person doesn’t care about the underlying technology. They care about what it can do for them,” says Magdalena Kala, founder of venture fund Double Down. “When you look at the growing awareness of Web3,” says Kala, “it’s always tied to consumer culture.”
To find alpha, hunt for the passion. That’s essentially the investment thesis for Jarrod Dicker, partner at The Chernin Group (TCG) and a former vice president at The Washington Post. “When we look at investments we look at passion first and then say, how is this uniquely unlocked by crypto?”
He gives the example of music. “I have a ton of passion for music,” says Dicker. “Would I love to be a record label exec? Sure. But do I have any skills for that? No. I’m never going to get hired by Warner.” In today’s world of Web2, Dicker’s passion is just a wispy fantasy. But with Web3? He points to projects like Hume, a decentralized record label, that lets the community (through NFT ownership) find and grow musical talent.
Continue reading: https://www.yahoo.com/video/investing-web3-culture-entertainment-124402911.html
