After entering the astronomical bull market at the beginning of this year, which suddenly stopped and fell by 50% since April, the cryptocurrency market is now at a fork in the road. Their next whereabouts can tell us how market conditions can influence mainstream adoption through artists, creators, and celebrities who are more interested in the field.
So far, the market has Irreplaceable tokens (NFT) and social tokens have always been associated with the broader crypto market. As creators bring in more fans from outside of cryptocurrencies, we see that this correlation is waning, despite the small sample size. If Bitcoin (Bitcoin) And ether (Ethereum) Don’t break their respective downturns, we do Entering a bear market, there are good reasons to show that the growth of the creator’s economy will protect social tokens from other parts of the market.
related: Onlookers: If this is a crypto bear market, how long will it last?
The reality is that most creators’ viewers don’t care about the price of BTC or ETH—at least not for now. They buy tokens to unlock exclusive token access control benefits and interact with their favorite artists and creators in new digital and physical ways.
As always, whether the next few months are bullish or bearish, both scenarios provide unique opportunities for our industry. Whether it is the market attracting new participants under good market conditions or getting rid of “weak hands” in a bear market, the near future will be a critical moment at the intersection of creators and the crypto economy.
NFT cools down, weed out weak players
Since the crypto bull market and NFT boom took off earlier this year, creators and celebrities have taken up a lot of space with Bitcoin in mainstream conversations about crypto.Today, should The NFT market is cooling down significantly, And as we saw in March, fewer and fewer big-name celebrities are starting to use NFT. Does this mean that NFTs are a past trend, or will cryptocurrencies change the way celebrities and their fans interact in the long run?
There is no doubt that some celebrities have used cryptocurrencies to easily obtain endorsement funds or make quick money.But many of them are indeed explore How does encryption get them closer to fans and use the technology to express themselves in new ways.
related: The hype is over: how NFT and art will benefit from each other
In the final analysis, influencers who use crypto as a “cash grab” will disappear from the field in the down cycle, as will many generations of crypto visitors. We are still discussing with many truly committed creators how they can incorporate NFT and fans into a larger-scale cryptocurrency activation. Whether they are household celebrities or creators with an engaged (albeit a niche) audience, the foundations of creators and cryptocurrency are firmly established and can withstand any market conditions.
“Middle class” breakthrough
It’s not just the well-known creators who use encryption to establish deeper connections with fans and own their financial relationships, rather than letting large technology platforms decide terms-creators with small and medium-sized fans have also explored ways to connect with fans. The audience is encrypted and NFT.
The creator economy is made up More than 50 million YouTube users, TikTok stars, bloggers and other types of content creators.The industry is growing at an alarming rate: advertising spending only on influencer marketing Close to Last year it was $10 billion, not to mention that creators traded directly with their fans. In these direct creator fan transactions, cryptocurrencies are becoming more and more common.
Although the NFT market has fallen, creators continue to explore this space and Technology is continuing to build Towards more functionality and practicality.In crypto, creators with millions of dollars in “market capitalization” Economy It is more common than ever. It is not only the creators in the encryption field who have successfully built the crypto economy.
For example, Twitch anchor Alliestraza mainly broadcasts card games such as Hearthstone and Magic: The Gathering Arena to her 225,000 subscribers. Alliestraza and her community of ALLIE social token holders have built a million-dollar economy through unique benefits such as allowing the token community to participate in fan tournaments for various games.
As more and more creators build this type of economy with independent value and functions, we will see social tokens designed around active community use/participation and wider and less diverse ones that can attract more speculative participants. The correlation between stable crypto markets is getting smaller and smaller.
Mass adoption and creators
Many people who used encryption in the early days may question why all of this is important.Creator Coin is not Peer-to-peer electronic cash system or”Global computer. “Yes, maybe they are not. But bringing new audiences to cryptocurrencies and helping them understand the value of the technology is the only way to significantly expand the space. Crypto is still there. Early adoption curveIn order for more people to master the technology, people will either need to use the technology as it does today (occurring at a fairly modest rate), or the technology will have to build more user-friendly layers that have a strong impact on technology and finance. Have less interest or knowledge.
related: Understand the systematic transformation of financial services from digitization to tokenization
Meeting consumers—interacting with their favorite celebrities and creators—is one of the most obvious ways. But the opportunities are not limited to creators and celebrities: imagine what the adoption curve would look like if everyone, brand, or website on the Internet that could benefit from decentralization were tokenized.
Of course, evolving regulations will play a role in the speed at which encryption and encryption-related projects are developed and adopted. This will be a key area worthy of attention for creators and celebrities from all over the world, especially the United States. For encryption platforms that serve creators, the compliance of the Financial Action Task Force is already a must.
related: Draft FATF guidelines for DeFi compliance
But as technology and regulations are combined and encryption is applied to the experience that Internet users already have, billions of people will gain exposure and become more familiar with the power and potential of the technology.
This may be the rising tide we have been waiting for.
This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.
The views, thoughts, and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Zhou Kaiwen As the founder and CEO of Kabam, he started to engage in e-sports games, which eventually sold for $1 billion. His journey in the crypto field began in 2018, when he co-founded the blockchain ecosystem Rally and served as the CEO for two years. The company allows content creators, developers and others to control their own digital economy. Zhou later founded the game-centric blockchain platform Forte. In addition to his position at Rally, he currently serves as the chairman.