🧘♂️ALERT: Surprising Hot Crypto
We weren't expecting this...
Today’s big idea is based on the creator economy. The term creator economy is not new but has risen in popularity with the advancement of blockchain technologies. The creator provides value in terms of entertainment, knowledge, music, art etc and in return their community creates economic value for the creator.
The creator economy market size reached $13.8 billion by the end of 2021 and continues to grow at an exponential rate.
Introducing the Creator Economy
Our surprising hot crypto trend. Who would have thought crypto would impact so many aspects of our society?
The Story Behind FriesDAO
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🎨 The Creator Economy
Creators are at the mercy of the platform and its algorithm. They gatekeep profits and constantly change the algorithm which is developed in the interest of the platform and not the creator. Creators only make a small percentage of the revenue that they create.
Spotify accounts for 20% of all recorded music revenue in the world yet only 2% of artists on Spotify earn more than $1,000 a year. Artists are outraged and rightly so as the average pay per stream is as little as $0.00348. Spotify is not the only organization to treat its creators as cash cows. The problem is that creators are building their future on rented land and are forced to pay far too high a price.
Should the algorithm stop working, should the creator fall out with the platform or should the platform wish to drop the creator for the next best thing, their livelihood is gone.
How can crypto fix this?
Blockchain technologies allow digital scarcity and economic coordination which provides the tools creators need to be fairly compensated for the value that they create.
Li-Jin, Co-Founder of Variant Fund, a crypto venture capitalist fund specializing in the ownership economy, believes that creators will now only need 100 true fans to make a good living. This is because platforms such as Rally give creators the tools to fairly accrue the value that they create.
Rally is a blockchain network that allows creators to launch their social tokens easily and at a low cost.
Social tokens are cryptocurrencies that are linked to a creator's brand and economy. They are owned by the creators giving them greater control over their economic success and intellectual property.
Creators can utilize their social tokens to offer different tiers of exclusive content to engage fans.
For example, a musician could create their token on Rally and offer a premium package. This package could include private virtual concerts costing the equivalent of $100 a month in their native token.
From just 100 loyal fans signing up to a year's worth of this package the creator would make $120,000 a year. This is as much as they would make from about 34 million Spotify streams!
Now that is bringing power back to the people. Concepts that hold the most merit are those which seek to fix real-world problems and the synergy of crypto with the creator economy is a perfect example of this.
🧮 It All Ads Up
Coinbase and FTX were left much oBlige’d after Sunday’s Superbowl ads, as viewers cast aside their M&Ms and kicked the Dogg away so that Dre could find a spare Fifty to go crypto shopping. And yes, there was no way we could get Kendrick Lemar into that terrible first sentence. One thing’s for sure – millions of people were exposed to crypto for the first time:
With 30-second slots reportedly selling for ~$7 million, FTX splashed out on a 2-minute ad featuring Larry David turning down some of history’s greatest inventions, and then FTX, with him “never being wrong about these things”.
Coinbase’s ad featured a moving QR code that bounced around the screen with no context. It was so successful the Coinbase app shot up to 2nd place on Apple’s U.S. App store.
A rush of 20 million hits in the first minute caused the website to go down as people flooded online to win one of three $1 million Bitcoin prizes, prompting Edward Snowden to post this wry observation.
Several other crypto ads have led some to call this the “Crypto Bowl”, with comparisons being made to the Dot-Com Bowl of 2000. At that time 17 of the 19 ads were for websites, of which most disappeared within a few years.
More exposure for crypto is a good thing, but with newer participants will come more fraud and some think only FOMO is being sold. Stay vigilant, just like one of the companies which advertised in 2000 and is still around: MicroStrategy.
🍟 Do You Want Some FRIES With That?
FriesDAO started because of a popular crypto Twitter joke about going to work for a Mcdonalds when the markets are down. Now it is a decentralized autonomous organization (DAO) on a mission to build a fast-food franchise empire.
A DAO is an organization that rather than being run by people, is run by code (smart contracts) agreed upon by those who start the DAO. According to Dune Analytics, they have currently raised around $5 million from 445 unique contributors.
FriesDAO is a high-stakes experiment testing whether an open community can successfully run a real-world enterprise.
The funds raised in the treasury will be used to acquire traditional fast food franchises on behalf of the DAO with the ambition to own at least once in every major U.S. city.
Blockchain technology will also be used to build on-chain protocols that will access stored operational data. This will improve efficiency and allow integration with DeFi protocols.
But even if this does not become a profitable venture, at least members will have somewhere to work when the markets are down… right anon?
Tomorrow, in part 2 of our Hot Token series, we will demonstrate how we can dive deeper into any token, helping you decide whether to buy, sell or hold your assets.
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