First, thank you for continuing to follow this newsletter and podcast. I know that I have been inconsistent lately. The crypto markets have been keeping me extremely busy and I also joined the On Deck Podcaster’s fellowship earlier this year. I hope that this program will help to improve all of the content that I share with you through Look Up! and ultimately make me a better creator. I plan to get back to the normal state of affairs when the program ends, with Look Up! weekly in your inbox every Monday morning and new episodes of Look Up! released every Wednesday. Thanks for your patience and support!
Those of you following Look Up! over the last few months, may have noticed me write and post about Non Fungible Tokens or NFTs.
Since the digital artist Beeple sold $3.5M of digital art in December, the NFT market has been on fire with more artists and creatives are rushing to create and sell new assets. Some might say the market is overheating, and I tend to agree that the valuations for certain assets are a bit out of control. Tread carefully, as this bubble is likely to end as most others have before it.
However, NFTs power the engine of digital property and this will reshape the internet as we know it. So while the short term trend may be too hot, the long term future remains bright.
Today, most people are focused on the limited market for digital collectibles and art that NFTs power. This includes hot collectibles like NBA Top Shots, digital art like Beeple’s works, and even ownership of music like 3LAU’s latest release. This is a sizeable market, but only the tip of the iceberg.
Another killer application for NFTs is the ownership of in-game items in virtual worlds such as Decentraland. Many of these virtual items have utility - they can be used for gameplay in the world’s in which they were created. For example, in the game Axie Infinity, owners can use their Axies (loveable characters) to battle for rewards that can be exchanged for cash. In Decentraland, owners of LAND can rent their property to others. In Zed Run, you can buy and breed virtual horses, then race them to earn.
The ownership of cash-flowing digital property within virtual worlds is an empowering use case that will democratize access to work. In a world where capital moves freely across borders, but labor cannot, work in virtual worlds can help level the playing field for labor.
That is why, last year, I invested in Yield Guild Games or YGG. YGG is a guild of gamers that are proficient in utilizing in-game NFTs to earn income. A percentage of the income they earn goes back to the guild. Though some virtual goods are too expensive for players to purchase outright, these players can borrow items from other collectors, earn with them, and capture a percentage of the cash flow that is generated.
This is the “play to earn” concept pioneered by YGG. The protocol’s founder, Gaby Dizon, is based in the Philippines. He started YGG after he realized the power that it could have to change the lives of those around him. When COVID ravaged the world, the Philippines were hit hard - with over 40% unemployment. Gaby taught many of his friends and family how to play Axie Infinity from home. As a result, they were able to earn meaningful income from playing the game.
I see play to earn as an alternative to universal basic income - there is a future in which individuals from all walks of life are able to earn a living by simply playing video games.
We’re still early days on play to earn and the broader NFT market, but I am excited to share this concept with you all and hope you’ll give it a deeper look.
This Week’s Podcast: Strengthen Your Mental Fitness with Olivia Bowser, Founder of Liberate Studio
“I am often overthinking (to a fault), rather than staying present. I’m constantly trying to get ahead of myself.”
In this episode, Olivia explains her journey to create Liberate Studio. Starting as a varsity skier in upstate New York, Liv then moved on to an intense career in digital marketing at a startup. After struggling with personal anxiety for years, she took her mental fitness into her own hands and has developed a program for herself and others that highlights 5 important pillars of mental fitness: presence, gratitude, pride, courage, and resilience.
What I’m Reading
Ideas
The Path of the Humane Technologist, Andrew Murray Dunn
Zeroth Principle Thinking, Bryan Johnson
It’s Up to Us to Make the Future Better, Peter Thiel
Markets
The Great Reset, Part V: Woke Ideology, Tyler Durden at Zero Hedge
Lumber Prices are Soaring, Why Are Tree Growers Miserable?, WSJ
Bond Tumult Complicates Life for the Fed, Bloomberg
Metaverse, NFTs, and Digital Collectibles
Musician 3LAU Earns $11.6M in First Ever NFT Album Sale, Business Insider
NFTs and 1,000 True Fans, Chris Dixon at A16z
Banksy Burned and Recreated Digitally
Crypto
Investing in Optimism, Chris Dixon and Arianna Simpson
Introducing Gateway, by Robert Leshner
The State of Miner Extractable Value (MEV), Igor Igamberdiev
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