Are NFTs a pyramid scheme?

Transcript

GN GM welcome to went through Academy your one trusted source to capitalize on the next big phase of the internet but don't get caught in a hype cycle on Jaybird joined by my co-host and we believe that nfts are going to change the world and that's why we're carving a path for doers to confidently build and invest in web 3. gmgm everyone roll here we are talking about nfts looking kind of like pyramid schemes nowadays everything is kind of falling apart people are starting to stop speculating on these things and we are kind of seeing some crisis in this space for everyone listening on the podcast we are right now doing a tour space and

we're doing this every Monday at 12 pm East hopefully you can join us next week and for everyone in the space hello hello hello the future of social media is here and that future lives in web 3 on top of lens protocol web 2 social platforms are broken and right for disruption you see the epicenter social media is the creators and yet they are the most neglected web 2 platforms like Facebook Tick Tock and Instagram are all essentially robbing creators of their worth creators are a new type of entrepreneur forming new types of businesses yet with web 2 platforms creators don't own their content to their profiles and that's their product in business instead they are tied to the platforms they choose to create on well just like how crypto is freeing us from Banks web3 is freeing us from these centralized platforms on lens protocol

creators own their content own their profile and even their social graphing followers in the form of nfts this allows you to move freely from one social application to another with your content profile and followers moving along with you lens protocol enables self-sovereignty for your social graph and interoperability across the internet at Webster Academy we believe this is the future of Social and that's why we've partnered with lens to ensure that the path of social media is heading in the right direction visit lens.xyz to learn more today did you know that web three users lose billions of dollars every year due to phishing attacks if you've been in the space long enough then you or someone you know has probably Fallen victim to one of these

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you're among the first 1000 users you'll get free access for life let's have some context so why are we talking about nfcs looking at experiment schemes so this whole discussion comes off of what happened with the Zuki last week so let me just remind everyone they basically announced a new nft collection in their IRL event in Vegas so they met up with the community they announced this new collection it was a 20K peace collection that was promising really cool art about I don't know like water and fire whatever the air drops about 8 000 of them to Suzuki holders then they gave azuki and beans holders this derivative energy of azuki they gave each 10 minutes to Mint this caused a lot of like fomo and a lot of gas spikes it

wasn't as bad as people thought but there were still some errors and people couldn't get their hands on this new collection that's called Elementals and the big takeaway after this mint was that they failed to attract new community members now I think most people know what happened we even have a newsletter on this this is just a reminder but basically they raised 40 million after selling these nfts at 2E and once everyone bought and they were kind of expecting this big reveal the art was exactly the same as Suzuki's because asuki is a pfp collection so what they did is it's actually been diluted their ignition collection because now if someone wants to be azuki because they like the art they can just buy this new collection that's

costing way less than a nazuki so they basically rug their Community probably did it by mistake I don't think they did it on purpose but still it was a big fail so this whole blueprint was set by yugolabs who they launched board age in 2021 they did all of these air drops with kennels with Serum with mutant apes and so on they need all these games and kind of like every other NFC collection wants to copy yoga Labs but it's clear and azuki showed us that this kind of fails for most products so what I wanted to ask you Jay is is this the end asuki just killed the trend of derivative nfts because it's clearly not happening or is this just a reset and we've got a you

know come back stronger yeah it's a great question look this is definitely not the end and we're gonna talk about some numbers on chain later on in this episode of how end of season got there in fact we're at all time highs on nfts what azuki did was they showed which we have been talking about if you've been listening to web3 Academy for a while we've been talking about this for a while and as teas are not a product if you sell an nfts product which is what azuki did which is what yoga Labs has done which is what moon Birds did which is what paju Penguins did which is what mfers did all these pfp collections sold their nft as a

product and nfts in their set on their own are not a product and what has happened the reason we all got so hyped about this is because of it was a speculative asset right so everyone was like oh man I can make so much money buying nfts I thought that myself I remember sitting down with my wife and being like I'm going to be an nft Trader I'm a side baby we're going to make so much money don't worry I got our retirement sorted out and you know what I did I've probably lost a hundred thousand dollars in the past year I'm trying to do that like my lights way to go Jay so and if you're listening to this and the same thing happened to you that sucks I'm sorry but there's a lesson to be learned here and you know

what's funny is it's very similar to the.com Bubble of the start of the internet what happened at the start of the internet back in the 90s was everyone was like oh you're an internet company great I'll invest in you I don't care what your product is I don't care what you're gonna sell I don't care what your business plan is I know that you're an internet company boom I'm in and so everyone invested in the bubble burst and a lot of people lost some money a lot of money that same thing is happening right now nfts everyone was like oh I don't care what your business plan is I don't care what your pro how you're gonna make Revenue no I don't care about any of that I just care that you're an nft and you're an nft and so I'm going to invest in it and I'm going

to make money well well you're wrong because nfts are not a product it's not a sustainable just because you're selling nft does not mean you all of a sudden have a business that's going to succeed and be sustainable it not at all so we're seeing that the bubble is bursting it's bursting right before our eyes suck I'm sorry ngmi to everybody who invested in nfts that are just nfts right now that he said there is massive potential I am still bullish as ever on nfts as a tool in a business as a Tech Tool because there's huge potential there did I answer your question I don't know I kind of went on a rat there you

did yeah and I wanted to step back a bit and whites ask you about yoga Labs is this why they succeeded so far just because they were so early to this new shiny thing was there more to this yeah 100 you will have us in a way right because they were so successful during a high cycle by basically selling derivatives of an nft right and so everyone was like there's the Playbook let's go follow that Playbook and boom right before your eyes you can see it right now azuki just tried to follow the Playbook and it doesn't work it's not a Playbook that makes any sense it's a Playbook that should have never existed

so sorry folks unfortunate that we all got caught up in that hype cycle and I'll admit I got caught in that hyper cycle too I'll be sure I'll never caught in that hype cycle again you keep listening I promise I won't steer you down the road direction again thank you God listen appreciate you guys so yes I think that like in a way azuki's success really created a Playbook that everybody was like okay let's go follow that Playbook but if you're still around if you're an investor don't invest in nfts that are just a nft product anymore you know what go use nfts and then if you're a business Builder do not follow load the ugly's Playbook because it's not a

sustainable Playbook let's look at you lots for just a second year they were smart enough to know really as a result of the fact they were able to raise so much money they had amazing people behind them they had an incredible Community Hugo Labs like the boardwalk Yacht Club Community it started as Degen but it's not degen's anymore it's not like speculative who's in the either Labs Community Snoop Dogg reading celebrities leading business Minds right like all of these incredible business minds are in the ugalov's community are important so what do they want they want to build a business and you gloves as a result was able to Pivot and hire Daniel Alegre as their new CEO came from Active Vision or Activision wizard so you came

from bitter what is that that's a gaming company all their stuff now is focused on gaming and more specifically casual gaming because casual gaming is a great model right like that is a business form that makes sense and so Hugo Labs yeah I still continue to be bullish are you collabs only because I I see them pivoting into creating and sustainable business but yeah the model if you're a business do not go launch a pfp as a way to raise capital or selling a product to your community you're just gonna yourself because your community is going to be passed they're never going to be excited about it because I want another PFE what do I need a pfp for right yeah it's just you know there were some

tweets out there that boardaves muted for 0.08 e and people who minted back then are still profitable but and that's the argument for like this whole thing still being alive kind of thing but we gotta remember that like you said you mentioned celebrities Justin Bieber purchased his board in January 2021 for 1.3 million it's now worth 60k so that fits things in perspective and lets you know like how unsustainable this is for the long term so you talked about nfts being the product and I think you kind of touched on the fact that there are two types of energy so we talked about nfts being the product AKA azuki and yoga Labs selling these nfts basically on the promise that they're gonna build something that will give value to these nfts so give a lot of strength to build

all these games as you said we're getting Daniel Alegre on the team azuki is trying to build hilumia which is the the metaverse and to me it kind of sounds like they're selling these nfts on a promise which makes them sound like a pyramid scheme has the title of today do you want to give us an example of like how an NFC could be a product I'm gonna help you out here and mention budget Penguins do you think that there is chance for these pfp projects to Pivot and you know give utility to these nfts yeah it's important that we answer that right like our energy is just a pyramid scheme no they are not but most of the nfts that we all have speculated

and talk about and invested in are a pyramid scheme in a way right I hope that azuki makes it right I don't want to fight on them but yes if somebody is selling you a JPEG basically or a pfp call it whatever you want and they're selling it to you as an nft and they have no business behind it they don't have a they don't have a business plan they don't have a product that they can sell sustainably like they don't have experience or like a track record then like yes that is a pyramid scheme they're selling it to you in Hulk that you will go and Market it like crazy and talk about like crazy and

then you'll continue to sell it and other people will jump in and want to buy it like that's the pyramid scheme right now that being said a couple years from now we're not even going to be talking about this this is a moment in time that is an unfortunate moment in time because a lot of people are losing a lot of money so that's very unfortunate again it's just like FTX and all these shitty things that keep happening into our beautiful blockchain technology which has so much potential and is going to change the world and it is going to make a difference to us as consumers and us as businesses long term but right now there's not enough of those businesses yet that are using nfts as a tool in their toolkit most of the projects are just these yeah the pyramid

scheme they're these entity projects that are using nfts to create height raise capital or just to make money to be honest but they don't even know what they're going to do with the money and they don't even have a plan so but this is what's ironic is like and I'll get back to your question about you picking in a second is that nft usage on chain is at all time highs because nfts as a tool as a tech filing system have tremendous potential right as identity as a fractionalized asset as all these things as a membership all these things they make a lot of sense

right but this pyramid scheme speculative asset is dangerous and it us and I'm sorry folks it's the it it's the end of that Playbook and thank God because don't get it wrong people are going to still try to continue to do it now you bring a pledge of England I have a moon bird I'm not gonna sell right don't get me wrong I wish I did right I missed my window but I'm not going to sell it and I'll tell you why I'm not going to sell it because Moon Birds did raise ton of money I don't exactly remember what the amount wages system they just raised 50 million yeah from like outside investors in equity but then they also how much did they get from the sale of exactly the uh selling the moon Birds right so I'm not

gonna sell and the reason I'm not gonna sell mine because I look at pudgy that's why I'm not going to sell my member I mean the main reason I could sell my moon bird is because like it's just too big of a loss right I wouldn't get much probing now budget Penguin shows as Euchre Labs is showing as some other projects are showing they're showing early signs of this idea of like you could invest in an nft and then you could have some form of capital flowing back towards you in the form of Ip there's value in your ownership of that nft in the sense of Ip in the case of pudgy they are using the Penguin on memes and they're trying to do that model with with the memes too

but I don't know if they've yet figured that out so yeah nft projects can come back I'm not saying that these all these projects are dead they've got a ton of money right azuki same thing at the same time to be honest if I don't know what the price of Suzuki is right now but that is one of the few projects that is continued to do well throughout the bear market like I actually think they've gone up throughout the bear Market haven't they like they were at 15 eat last I checked it yeah it took two weeks off for paternity leave what are they at now Raul no they're around six feet so they they dropped right they call 15 or 16. look this is not investment advice but I'll bet you that azuki will go the

same way I think it's going to go lower because they don't have a business yet right now in 10 years if azuki builds a metaverse and it's super dope and millions of people are in it then only azuki will have tons of value because in their metaverse the yazuki they'll figure out a way to make that and a team I'm sure at least I hope they would otherwise they'd be writing to everybody but that's a BET right like that's a big bet you know that's betting that they could metaverse which is hard same with yugolabs you're betting that yoga Labs can build a metaverse slash build a game which is very difficult like and always be able to build that they then have to attract millions of people into that game or into that better verse they got to figure out the tokenomics to get everybody in and get

capital and get revenue flowing back to their holders or they've just they're just saying oh you own the IP and you go do whatever you want with it right yeah which I'm not even gonna get into that yeah and I agree with you that why Japan is a great example like they build a product that they launched from Amazon and now everyone who sees you know these toys on Amazon and they buy them they get this experience on chain and it gets interact with the ecosystem and ultimately everything leads to that core 888 collection which is not really the case for azuki whatsoever or Google Apps everything is just you know being diluted by just clumping out these oh please add one more thing to add about budgies is that they're going to

Comic-Con they just announced a few hours ago they'll go to Comic Con which is the biggest entertainment event in the world millions are going to attend online or in real life and they're getting so much exposure that they're kind of taking us Main Street and they're doing it it was like just because they have a core product that they want to sell exactly exactly what you just said what's the product that they want to sell two products they have these toys and then they also want to license their video game and they want to be like go build it will license you know Pi Gip you go build a video game they want to go to a TV or a movie producer and go build it will license you the IP right would I go buy Apache no I'll tell you why because you'd be betting Raul as like you said they

are figuring out this stuff they're the best team so far that's been doing it over the past six months they've been doing a great job really building a sustainable business but it's still early right is pudgy all of a sudden going to be the biggest toy in Walmart I don't know maybe and if it is great then your investment in their nft was a great investment and you're gonna make good money how much don't know because we don't really know how the capital is flowing back yet that's a great boy and I think I think yeah we talked about like this first part of NXT projects that are right now so right now we just talked about nfts being the product you just sell these nfts on the basis that they're going to get some value and they're visiting the product now we

can't call them a product because there's no fundamental utility to it so most of these nft projects look like the pyramid scheme and so they will add the product inside but there are other parts of this stack that's being used towards really great stuff so we've seen just last week Lacoste who launched a new kind of utility to their initial nfts and that's what I want to talk about today because we mentioned there were two types one of the products we talked about that let's talk about how everyone else is using nfts in the business and we've seen and you mentioned this we've seen that on chain people interacted with nfts on marketplaces which means that like people trading them is going down to zero like it's going down fast

but people interacting with nfts on chain for utility examples you know so site or to get access to a community and so on that's an all-time high all and there are a lot of companies that you know do this there's Reddit there's Starbucks there's Lacoste there's Nike with the dots which there's and so on I want to give your opinion on this kind of nfcs because these don't sound like a pyramid scheme and they sound like they do have it is that what it seems like yeah these are the early examples these are the early pioneers of blockchain in the form of nfts these are the few companies that are trying to innovate and use nfts in the way that we

believe that everyone will use Reddit is using nfts as a way to basically take their Community platform that uses pfps within their community and so they're allowing those pfps to now be owned assets that makes a ton of sense because there's I don't know how many users are on Reddit Millions 20 million 100 million I'm not sure a lot of users are on Reddit and when you have that many users you have a profile picture and it makes sense that you could own that profile picture but yes everybody should be learning about the ways that businesses are using nfts to improve their existing business or maybe to

build a new business like sound XYZ is or World coin or World app is like those are examples of projects that are using nfts not to speculate on or to create a better user experience for identity right the challenge is that we are so early like I can't say it enough we're so early and what happens when you're so early is speculation because there was so much hype and speculation nfts became profile pictures that is what like so many projects based their business around let's launch a profile

picture I consulted for projects where we literally spent hours being like what should our profile picture look like right and but it's not art that's the key thing here right like these are profile pictures are not are crypto punks I would argue is the one that is truly art because it always fit into the world of Art in my mind it's already being shown in art galleries around the world it's collected by some leading art collectors so I do think that crypto pumps is the one that you could consider to be art but yeah like all the rest of them unfortunately pyramid schemes right before our eyes but everything else yeah like and and this is what we try to talk about on the show is we try to talk

about the real use cases a few weeks ago we wrote a report about burn eyelid by be friends look at befriend was be friends a pfp collection no it wasn't that's a pfp collection that's the shittiest pfp question I've ever seen right it was Gary B's and drawing right I don't think it's necessarily really art either but he did not focus on the pfp of it he just wanted to get nfts into the hands of his consumers because he saw a way to create engagement and now he has burned Island which is this incredible engagement mechanism and that is using nfts in a powerful way right burning is a

mechanism that we have never had before that really matters to businesses right every business every Creator out there is going to be using minting collecting and burning in their business within the next five years or if you're not you're missing out on a huge opportunity to make Revenue create a better experience for users the problem is the tech isn't there yet so we have to wait because you'll have to right now go write your own smart contract go figure out the tokenomics go do all these things on your own own which is very very difficult and most people don't know how to do that so people just keep resorting to the old Playbook of yoga Labs but it's simple I could go right now at

mid-journey and I could launch a pfp collection my wife's business made hundreds of thousands of dollars launching frog pfp collections on GameStop like a year ago on the games they were like one of the biggest collections in the GameStop Marketplace they saw an opportunity they wanted to build community online and so they went after it but those pfp collections are also they're dead now didn't know what they were doing Bravo do you want to give the Apple Vision Pro example yeah oh me too because that is a great feed grading decorations from nft God so he was like imagine if Tim Cook just tweeted for like six months before releasing this apple region Pro like just saying oh we've got some huge things coming up let me cook and your

pun intended in Brooklyn and uh you know wanted to you know extract liquidity from Apple customers without showing them the product and it's a great product we want 3 500 for it and we're gonna show it to you later no one would buy this this Apple product because what apple is doing really well is they are showcasing the benefits for like a year before the product comes out that's what they do with the iPhone they basically just came out they said this is the phone it has no buttons this is how it works and everyone's like wow what we're doing here with NXT is it's completely the opposite we're basically just saying we're coming to these people with a product that we don't even have the prototype for and we're trying to sell

it to them so it would be like Steve Jobs would come with the iPhone and would so all these people the benefits of an iPhone and you know this doesn't have any buttons and stuff like that without actually showing them so that's what we're doing now right now we're just promising these metaverses we're promising these games that will come I don't know 10 years from now or five years from now and we're trying to get money from these people when we're not showing is the benefits and that's why it's not really working and I think a point to make is that we're talking about you know NFC is being just a pyramid scheme I want to make the clarification that they're not like the nfts still have value as we said Lacoste Nike Reddit and all these brands are using it as they good but as a

speculative asset it doesn't have any utility so in your toolkit if you want to build a business and I think one thing to mention is problem with all these projects like with the azuki's isn't the dilution because of this new election it isn't the game that's outcome it's with meme land it's not the art is that just the expectations were set to high and people paid way too much money for this and when you pay too much money you're way too high and you are investing in this early stage project that has a team with barely any experience most part vgs and have no track record some of them are even Anonymous and I'm not even gonna get into the rhyming part but we're basically just at the stage like we were

in the.com bubble like we said in the beginning of the space where we're just putting money just because this is a new shiny thing called edites and we're just hoping for the best so that's not really sustainable and that's what I wanted to ask you like how do we get to a point where we become like or not we we're just one company in this space one nft project because the Apple where they actually build the product and they come up with the benefits and then they try to sell because right now it seems to be the other way around we tried to sell the product and then build oh how can we go the other way the answer to that question is years of work right like yeah so there's no you know what I mean like like go build a business write a business plan come up

find product Market fit do consumer research to understand what your consumer wants to buy and then sell them something they want and then scale that to new consumers you know hire a marketing team spend money on improving your product and boom build a large business anything that like this analysis is done right now but it's like the assets are like okay people want follow people want to type people want speculation that's what we're gonna use yeah exactly like let's be clear if you are buying an nft that gives you access to a community right like a Discord well that Discord better have hella value in utility in it otherwise you're just buying it or if you're buying an entity

that says you own the IP and you can go do whatever you want with it well you better have a plan to go do something with it and you you better be good at turning IP into merchandise or into some sort of product right because you don't know if the team's going to do it or if you're buying an nft that's like oh we're going to build the biggest metaverse nobody has built a successful metaverse yet Facebook changed their name to meta one of the biggest companies in the world changed his name to meta and then built Horizon world who has anybody here been in the Horizon world is anyone here spending time in a rise world I'm not you know so it is very difficult to build sustainable businesses to build businesses that

attract new customers that have Revenue that can grow they can reach Millions very difficult so betting that an nft project can go do that it's the same as I don't know your as your friend starting a company and you giving your friend ten thousand dollars or five thousand dollars you're betting on your friend's ability to go build that company can they do it or not like maybe maybe they can but good chance they can't because 99 of businesses fail because it's really hard to build a business right I'm not saying you shouldn't go try go try but do not go and use an nft I would not sell an nft as a way to start my business as the initial product in my business because

all you're doing is you now have ten thousand or five thousand or Twenty Thousand whatever size collection you got you have that many holders that are now going to yell at you with crazy expectation of why is my floor not gone up floor floor increase my floor and they don't know how to support you they don't know how to help you build a business if you need Capital to build your business then go raise Capital the traditional way because the beautiful thing is if you raise Capital traditional way then a you get mentors and your investors are going to support you and they're likely people that know how to build your business right because

they're going to invest in you they're probably like oh I see your business plan I've seen it successful I know how to make this work so I'm going to invest in you and I'm going to help you get there right and also these investors they have restrictions on their ability they can't just go sell their equity in your business on an open market there is no open market right so they also have to stick with you whereas you sell an nft I can yell at you just like an investor would I'm going to act like an investor even though I'm not and I can now leave and sell at whatever price I want and lower your floor and it affect your business and affect your mental

health and screw you over in the end so using nfts as a way to raise Capital that is when it's a pyramid scheme then it's a pyramid scheme unless you can go build a business which 99 of them will not go build a successful business great answer and before we up I think we have a question from unified so I'll give the word over and either you have a question or something to add please can you do I love it just gonna add everybody should be focusing on learning the real use cases of blockchain not just nfts of blockchain because if you understand the real use cases of blockchain then you

can go apply those to your business you can go invest in them in a smart safe way and you could also you could get a job you could be a leader you could be an inferencer because you will understand the real use cases and that's what we all need to get and we're still all in the hype cycle unfortunately did you you have a question yeah thank you guys thank you Raul thank you Jay your provided us with great topics the only thing I wanted to say is like roll mentioned about the azuki Elementals so he said that it was their technical problem that leaded to all this fat and so on and I wanted to make a point that when you are that much overhyped project

you need to focus as much on the community building as possible and I'm a firm believer that the community building mistakes are the main reason why projects like this just Swap and all the people around nft theme they just think that it's just a pyramid scheme basically if we just divide all this situations into topics we can say that azuki had absolutely ineffective communication so basically the staff may be inside of the stuff people realize the vision and the goals but it was just only The Vision on a personal level but the community was just not sufficiently informed about this whole thing then also we can say that they were not quite aware of the

community sentiment and they had the way to over way too ambitious goals and they with really ineffective execution and basically they addressed the problems but it was not enough because it all goes down to the community and people are complex and simple creatures of the stay in time but they tend to remember bad things better than good things so maybe they could just not invest so much money into this asuki Vehicles into elementor's trailer and maybe for focus on something like Hardware only meetings community councils and cooperation Focus as much as possible on clear communication and just to firstly put Community involvement and then just

start developing process so I just wanted to break this case study from the community building perspective and explain how this can benefit the whole point of view of many people that nfts are just pyramid scheme as long as friends do not operate this way maybe we can change a division of many regular build users yeah you bring up a great Point here's the thing you are right this is all about Community because right now if you bother Mizuki that's the only thing you have you have your pfp and you have access to a Discord that's it you don't get anything else there's no other utility involved so that project needs to make that

Community very strong they need to invest in it they need to do the things that you said in the older meeting but here's the child what is community community is when people come together for common purpose and common goals and they contribute that's a key word here right they contribute when you have a community where it's a bunch of speculative asset holders it is very difficult to get those people to contribute because all they want is floor price go up right so I agree with what you're saying that they need to focus on community but I also think they're stuck in a way because it's not like the Zuki has a community of a bunch

of metaverse Builders who are like oh we're all building this metaverse together okay let's all contribute and let's all participate in building this metaverse and then they go do it as a community no they go to community of speculative asset holders who are like oh all I care about is my floor price so make my four price go up well oh you want me to contribute you want me to be a part of a community you want me to help build the community like nah sure like if you go into any of these discords right these are not real communities where everybody has a common goal and a common purpose their only common goal and common purpose right now is make money right and that's not Community make money does not build

community right common goal common purpose around something bigger than money bigger than yourself that's what builds yeah I agree and I just wanted to add to this just the fact that you mentioned the tech problems and the pre-communication I agree but I don't think that that was the only issue the thing is they communicated poorly in a way that they did like reveal the art that's the art was what led a lot of people down but the thing is that now people from the team are kind of like selling off their Zoom keys so they're kind of like just uh falling apart basically which is showing that they didn't really know the vision before they launched this we're not saying that this is over like I still think they have 40 million dollars that they've

just raised now they probably have a bunch of money from before and they can still pivot to you know do all of this things you said you know Hostess town halls with the community and figure just figure out what utility to give them because as Jay said their only goal is to make money so figure out how to do that for now and do that sustainably so that still makes money after five or ten years okay I hope we answered your questions yeah yeah I totally agree with you thank you thanks a lot I agree also I would just add that I would like projects this big and this over hype to get rid of things like explaining real real issue or like uh 15 minutes windows with something more knowledgeable than

I'm sorry we just had a little bit higher than anticipated traffic like what what the hell is that yeah are considered to be the second brand in this industry and also this project was destined to have such bad things happening because they focus on something that gets strict dopamine for people basically the really really massive show with their phrase check your mother wallets like I don't know it it doesn't actually Bruce the point of the whole entities it was something like we can build together we are a part of the community that gets you a lot of utility and so on but they just gathered a whole bunch of people that were jumping on this hype train and

they got what they deserved partially in my opinion hype is the most dangerous Market because it is very effective because it creates mobile the only way for hype to sustain itself as your marketing tacket is to create more hype and if all you're doing is creating more height you will crash eventually because you're not creating a product you're deciding machine and that's what we're seeing yeah for sure thank you guys thank you guys before we wrap up here let's give the word to unified yeah what's going on guys I really like your content can you hear me all right yeah nice yeah thanks for having me up you know first of all I really I really like your content and I really like the message you're spreading about changing

the sort common denominator of among web free projects from being projects which instantaneously gives you a short term Outlet you know just a very word project into businesses you know and and making web free businesses sustainable long term and rewarding for the community and they think you know just going along the large of what you guys have been saying you know it's easy to sort of look look back at these big projects you know and ask these pyramid scheme questions and I think you're absolutely right in being in this psych very early stage.com bubble but you know I think in terms of looking forward it's about Paving the way and there's a big responsibility I think on everyone as holders as investors to request higher from your people that you're investing into you

know like be a doxing be it certification of business formation you know be it more transparent books and being able to see directly into the business and what it is building because it's one thing to say do your due diligence in this space but it's very difficult to actually do your due diligence we're like this Unseen World where we all preach transparency but how many of these treasuries are actually being transparent in everything they do yeah I hear you're saying look well you said that brings up for me is if we look at the internet and the.com bubble the internet companies that did succeed were companies that use the internet to build new platforms through which we could

create new products to which we could engage e-commerce companies that were like oh we're going to take the internet and we're going to build ways we're going to build tools or ways that you you can sell products online because every business is going to want to sell products online boom like that created some of the biggest businesses social media company they were like we're going to use the internet and we're going to allow you to create content and communicate and connect with loved ones and with people all over the world on live boom that created massive company right so it's the same thing with blockchain we need more people to be focused on looking at blockchain and how can you use blockchain to create new ways that

we can have a better customer experience that we can have we can have better Customer Loyalty that we can fractionalize real estate investing that we can make our finances more transparent right those are all using blockchain to create better ways better businesses better platforms and that that makes sense that's what everybody should be focused on it's funny when we think about azuki azuki is also I'm pretty sure that they are also the team behind I think it's called churro Labs or churro Labs yeah right but they're the team behind that and that team is focused on this physical backs token concept and that

that has huge utility because as many look at Breitling one of the watch companies right one of the largest watch companies in March they started offering an nft certificate with your watch so if you buy by Brighton watch you can then go and you can claim an nft certificate along with your watch what does that do at a proves the provenance of your watch and the authenticity of your watch and then also with that nft you can get access to other experiences that Breitling offers you through Partnerships so basically they're token getting things right so if a Suzuki would just go focus on churro labs and creating a physical backed token product

boom you could go get Breitling could be one of your customers Rolex could be one of your customers some luxury brand could be one of your customers that wants to use your Tech in order to add an nft to the physical product which as value that is a use case that makes a lot of sense so that's what the azuki team should go focus on not another pfp collection we don't need pfps I really agree what were you say in them and then they think you're right it's on it's about building Tech that inherently invites Brands to do what they want to do with this lower barrier to entry as possible right and if we build it you know that you say them come maybe they

won't come now but they're certainly on their way and if you're ready in the position and they're well established in the web free space I think when they do come the eyes are going to be on you from people like that yeah and they are coming let's be clear if you look at be grossed at the internet and you compare it to the gross of blockchain we are on a very similar path the internet hit a billion users within 10 years blockchain will also hit a billion users within 10 years which will be within the next like three to five years probably the next three to five and you could see the growth Raul mentioned at the beginning of this episode we hit well not blast in the past I think three months ago we had

an all-time high in nft usage nft interactions on chain and the past three months we've been over 10 million every month and we had never been above 10 million before okay but at the same time activity on nft marketplaces from nft Traders is at an all-time low and that's what we're talking about here that's the pyramid scheme and that is dying and it should die but we are still growing blockchain is still growing these use cases are still growing and it's not going to slow down so it's an interesting time because you're there's a lot of fud going on which will lead a lot of people to leave but now's when you need to stick around now is when you need to keep building and you need to

find those real use cases because yeah holy then the opportunity is still as big as the internet if not bigger right because the world is bigger and we have more people and more money now so that's rad thanks so much for listening you know everybody if you're listening on the podcast next Monday at noon Eastern is our next Twitter space we're going to be doing these every week everybody who showed up on today's Twitter space thanks for showing up do you have any comments or anything uh you'd like to see us discuss on any future Twitter spaces you let us know uh look our objective is to inform you guys so that you can build and invest safely confidently in web 3 because this is the future and we want to be on the Forefront yeah and before we just leave here I just wait to extend our greatest

suits each and everyone listening to this You're the Reason within this weekly and for that we're super thankful with that said unroll and I wish you an amazing week see you guys later thank you for listening to web3 Academy your one trusted source to capitalize on the next big phase of the internet if you enjoyed this episode please share it and subscribe or follow so that you don't miss the next one while you're at it there's a link in the description for a free newsletter where we provide timely and relevant web3 insights so you can confidently build and invest in web 3. make sure to subscribe today one final note this podcast is for educational purposes only and nothing we say is financial advice crypto and Webster are risky and you should never invest more

than you're willing to lose thank you friends and see you in the next one