The NFT space is quite nascent and thrives on hype. And it's also a known fact that behind every successful NFT project is a strong community. Collaboration in the modern digital age is broken and open to the few who can get top-notched support from their agencies.
Non-fungible tokens (NFTs) enable a new way where people can collaborate in a more transparent, fair, and efficient manner. Recently, we've been seeing a lot of collaborations between NFT projects and other projects, influencers, thought leaders and DAOs.
Why is it Important to Collaborate?
Non-fungible tokens (NFTs) are digital certificates that represent content. Any interaction with NFTs is recorded in an immutable database named the blockchain.
Creators can develop the next schools of a culture where the main creator is the arts patronage. Imagine an NFT storefront creator who financially supports collaborator creators and receives a small royalty percentage from creators they have endowed.
In December 2021, there was a partnership between BAYC and athletics giants Adidas, which raised both the notoriety and value of the collection. NIKE also acquired RTFKT studios in 2021 and airdropped Nike NFTs to the community members.
These two examples show that NFT collections realize the importance of partnering with brands, other projects, thought leaders and DAOs.
Reasons for Projects Collaborating
There are three main reasons why projects collaborate. These are;
To build credibility- With the increase in NFT scams and rug pulls, upcoming projects need to make people believe and trust them. One way to achieve this is by partnering with already established projects, influencers, or DAOs who can lend credibility to the project.
To gain popularity- NFTs thrive on hype. People mostly buy into highly talked about projects. As such, upcoming projects leverage the followership and popularity of other projects and influencers to build theirs.
To increase their perceived value- We have seen cases when a big shot in the NFT space buys into a project and tweets about it, and all of a sudden, the floor price of that project skyrockets. Gary Vee has this kind of influence and power and wields it a lot. What happens here is that Gary Vee association with that project increases the perceived value of the project.
As a result, more people wanted to buy into the project because they believed it was a good project, and Gary Vee validated it.
Therefore, the onus is on the collaborating project, influencer or DAO to research the project they are collaborating with.
Final Thoughts
NFTs enable the collaboration economy by embedding automatic royalty collection mechanisms within a creator's work. As a result, it gives them financial upside whenever their work is used and makes it easier for them to build on top of each other's work.
You do not want to collaborate with a rug pull or a scam project. So as much as there are incentives for collaborating with projects, you must always know that your reputation and social capital are on the line.
DYOR before collaborating or accepting any collaboration.
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