Baby Bored Ape Steps Taken and Play-to-Earn (P2E) Shots Fired
Launches: NFL Rivals “Play-And-Own”, LimitBreak’s “Free-to-Own”, Art Blocks Engine, and Luxury NFTs
Happy Labor Day! Several notable metaverse items have surfaced since we left (finally) for a European vacation. We look forward to reconnecting all things Culture Meets Crypto. Speaking of, check out our Episode #6 with Philip Rosedale, who always inspires us. Philip created Second Life / Linden Lab back in the day and we can all learn something from this first-of-its-kind metaverse world. Notably, its GDP is roughly the size of Los Angeles! Importantly for crypto, he explains an important tenet of long-term virtual world survival, and how many crypto-backed worlds are misaligned from the start, as they favor the few, not the many.
Baby Bored Ape Steps at the VMA Awards
For the first time in history, the 38th annual VMAs included a Best Metaverse Performance, exemplifying the cultural shift towards authentic digital experiences that have been present in gaming for decades. We found this interesting for several reasons:
1) It’s the first metaverse category in a major awards ceremony
2) The winner was Blackpink for their show, “The Virtual,” in PUBG. Social media exploded with the upset as many expected Ariana Grande (in Fortnite/Epic Games) to steal the show. Other nominees included Charli XCX and 21 Pilots in Roblox, BTS in Minecraft and Justin Bieber in WaveXR. One of our mantras is that gaming is the Trojan horse of the metaverse and crypto will be brought in as a tool, but it's still early and most gamers (hundreds of millions of people) view crypto as a money grab. However, this is a significant opportunity as we believe this view will change over time.
3) Though Bored Ape Yacht Club / Otherside wasn't nominated, the NFT-inspired performance, led by power culture carriers Snoop and Eminem, was a creative and impactful way to insert crypto into mainstream culture and build mindshare. Also, see comments below re Gucci accepting ApeCoin (the native token) at select *physical* locations!
Blackpink’s show aligned with the end of their two-year hiatus, and was PUBG’s very first virtual concert. Spanning two weekends, the 9-minute show garnered 15.7M live viewers - compare this to Travis Scott’s series of 5 virtual shows in Fortnite with 27.7M live viewers. The event also included new in-game outfits and voice commands based on the group's members that could be used in-game.
Mythical Games’ NFL Rivals Launches First “Play-and-Own” Collection
NFL Rivals has launched its first “Play-and-Own” (PAO) NFTs, titled Rarity League. There are 2500 Rams and Bengals helmets, with each selling for .14 ETH. Users can mint these NFTs on the NFL Rivals site using crypto or card, and engage with other players on secondary marketplaces like OpenSea. After this initial drop, fans of each of the 32 NFL teams will also be able to collect their team’s own NFTs, with every team having their own 2,500 NFTs at launch. Each set will have over 500 traits, various rarities, and will provide access to exclusive events, in-game rewards, and other unique features. Collectors who purchase multiple Rarity League collectibles within a single drop will also receive a rare Founders Edition NFL player NFT as a bonus reward that will be playable in the game. Generally, we are positively biased toward the concept of PAO because it shifts the primary focus from behavior that feels more like work, to gameplay itself. Collecting and trading assets is fun! A beta version of the game is planned for worldwide release in early 2023.
Play-to-Earn’s Newest Nemesis: “Free-to-Own”
LimitBreak is a new Web3 gaming company that is getting a lot of buzz from its new concept “Free to Own'' (F2O) along with its highly-regarded founders. The company’s cofounders, Gabriel Leydon and Halbert Nakagawa, also cofounded mobile gaming studio Machine Zone, which is known for creating two Free-to-Play (F2P) mobile games, Game of War: Fire Age and Mobile Strike, which grossed $2.8B / $1B respectively. LimitBreak raised $200M to create MMO games in a round led by Josh Buckley, Paradigm, and Standard Crypto, with participation from FTX, Coinbase, and others.
Instead of selling the initial in-game assets as many games do, F2O gifts fans the items, which may earn royalties later. The goal is to align the early supporters with the game developers, both through passion for the game’s future as well as economic incentive.
So far, LimitBreak has released two NFT collections: DigiDaigaku Genesis and DigiDaigaku Spirits. Genesis were minted free on August 10th and have since exploded in value, currently trading around 9 ETH, while Spirits were airdropped free to Digi holders on Friday 9/2, and are trading around 3 ETH. We are always excited to see new builders experimenting in the space, but the idea of making the early game participants wealthy reminded us again of what Philip Rosedale mentioned on Culture Meets Crypto episode 6 (released this weekend!):
“If you are given the option of an idea that's genuinely transformative and empowering and a scenario where ‘I get rich if I get in early’ you can ONLY pick 1.”
The NEW Art Blocks Engine!
We were so lucky to have Jeff Davis, generative artist and Chief Creative Officer of Art Blocks on the 4th episode of Culture Meets Crypto. During the show, we discussed how Art Blocks generative algorithms could be used across more fields than fine arts - Fashion, manufacturing, ticketing, and gaming (36:50 - 45:30). The conversation led to the future of Art Blocks and a new tool the team was working on - the Art Blocks Engine - which was formally announced a week ago today.
One of the areas that really resonated with us was in-game cosmetic items. Fortnite, for example, has developed ~1,400 unique skins for their ~3 Million daily players. Instead of identical skins for all, what if each player could own their own personalized skin? The Art Blocks Engine could allow each player's style, favorite weapon, number of victories, and other unique factors to affect how their skin appeared when equipped. We think tools like the Art Blocks Engine have the power to turn gaming into a more personalized and unique experience!
“If I have some loot or a skin, or something like that, why does it need to be the same as everybody else's?... There is no reason to have duplicates when you can put generative algorithms in place of all those things.” - Jeff Davis, @44:05
Speaking of Algorithms, Bots in Blockchain Gaming
Gaming faces the exploitation of users through fake or modified accounts, whether they are used to farm valuable in-game items, level up their skills through unfair methods, extract data from real players, or falsify user count to raise valuations. Levan Kvirkvelia, co-founder of anti-bot protection company, Jigger, claims that nearly 40% of users in blockchain games are bots.
Kvirkvelia tweeted Jigger’s analysis of over 60 blockchain games, which connects single entities with a web of fake accounts on Petri dish-like diagrams. The software analyzes wallet addresses connected to games, meaning it could be used across other crypto protocols or token airdrops to find and prevent repeated users, or sybilors.
While identifying bots is challenging, stopping them is even more difficult. Jigger works with gaming teams to tailor solutions that are integrated into the gameplay. In dungeon crawler Mines of Dalarnia, Jigger implemented an item that a real player could have the ability to open, while bots would struggle to do so - an in-game captcha method of sorts.
The other bot prevention Jigger uses is “Proof of Humanity,” or having users upload a selfie, which is then run through AI programs to ensure it is not artificially generated or repeated. While this may work for security purposes, we doubt many players would enjoy the KYC process simply to play a game.
NFT-Related IP Rights Protection in Luxury & Pop Culture
French luxury brand Hermès filed a trademark application with the US Patent and Trademark Office, covering virtual goods, digital collectibles, cryptocurrencies and NFTs. This marks potential plans to expand its presence in the metaverse by creating and retailing virtual goods, joining luxury peers such as Gucci, Dolce & Gabbana, Tiffany & Co, Balenciaga, Nike, and Adidas. Hermès continues to protect its brand in the metaverse, following its lawsuit against the creator of an NFT collection called MetaBirkins for profiting off the “Birkin” name - the brand's iconic line of bags.
It really surprised us when Gucci announced in August that select boutiques would be accepting ApeCoin as a form of payment. Just think about that for a second - someone might be walking into Gucci on 5th Avenue in NYC and paying with $APE! While it is likely this partnership is marketing and publicity-driven, it nevertheless shows the industry’s continued exploration of the metaverse and creative ways to attract new customers. It is our view that crypto as a tool will be dragged into the metaverse - once we get NFTs right, the idea of property rights online will be too compelling to ignore.
Finally, Japanese and Korean IP owners have been bringing their content and characters to the metaverse - Sanrio’s announcement is the latest. The company announced its collaboration with Tokyo-based Gaudiy to bring its universe of characters, including Hello Kitty, to the metaverse through creating communities and collaborating with creators for NFTs. Gaudiy recently received a round of financing from MUFG, Sanrio, Sony Music, and Mizuho, and has launched Gaudiy Fanlink, which directly connects entertainment IP and its fanbase. Japanese entertainment companies across various domains – manga, anime, music, game – have already introduced Gaudiy Fanlink to their well-known IPs.