Commerce + Web3: Beanie Babies of the 21st Century?
A commerce investor's musings on where we are headed
As someone who has served as brand CEO and CMO in various companies, and as an investor who regularly works with web2 consumer brands, I sit in an interesting spot to recognize patterns taking shape underfoot. Trends come and go, and web3 is perhaps the largest trend that has taken the planet by storm over the last 12 months.
Recently, I have been talking all over the internet on trends in commerce and web3, probably the most exciting space to me right now. Though many think of web3 and NFTs as the 21st century Beanie Babies, I believe there is staying power here. If I were to summarize my thoughts on the year ahead, it would be to pay attention as follows:
If you are asking what web3 is, you are already behind. But don’t let that stop you from getting up to speed. Here is a good article on web3 and what it means. Here also is a good dictionary. Then, get yourself a MetaMask wallet, join a Discord, and buy an NFT on OpenSea for $30. The best way to learn is to do.
It’s important to note that NFT stands for non-fungible token, but really is a fancy word for “1/1 digital asset”. 1/1 digital assets could be anything, from a recorded song to an internet moment someone wants to immortalize.
NFTs are at their peak. A WOW just sold for 576GBP at Christie’s last night. PFP projects (Profile Pictures - read the dictionary above!) were the first NFTs to capture our imaginations, but soon NFTs will fade to the background to be the transaction layer for many other use cases in commerce. We won’t even talk about them a NFTs in a few years, but rather, have blockchain-based utility run through the veins of modern commerce and media. There is a world to imagine where all content, all media, is an NFT, and where every transaction is recorded on the block-chain, especially as gas prices resolve and L2 protocols gain momentum.
Especially as a commerce investor, I don’t differentiate between “ideas in web2 v. “ideas in web3”. Commerce will have decentralized and blockchain-backed solutions that will integrate with existing ones. So it’s less about “will web3 take off?” but more so “where is the highest and best use of web3 technologies and solutions?”
In our commerce landscape, there are a couple exciting use cases for decentralization so far:
Loyatly and membership rewards: Imagine Yeezy NFTs airdropping to customers when they purchase from Gap stores, or Tesla features that unlock for NFT collectors. NFTs can unite and power community.
Authentication + digital receipts: What if your purchase from a brand could automatically be logged on chain? Imagine what you could tie to your purchase (warranties, product specs, community perks) and how easy it would be to sell an authenticated good.
Community organizing (aka DAOs): DAOs open the possibility for collective action in ways we haven’t seen before. There are investment clubs, groups protecting the Amazon, DAOs trying to buy the Constitution (!). DAOs present new possibilities for self-organizing, and it’s still early days here but excited to watch this play out in commerce and for the modern corporation and non-profit.
Charitable giving: Just look at Ukraine, need I say more?
Digital goods: GenZ care less about owning stuff. And live in an increasingly digital world. Digital goods, including digital fashion, offer ownership that you would not/could not have in a physical world. Roksanda and others have created runway looks for purchase that you wouldn’t wear on the street, but still are Fashion with a capital F. Digital goods will have more staying power than the olds think they will.
But please read and listen for yourself!
I interviewed Chris Cantino on the future of web3 and commerce for Forbes.
Was interviewed for Modern Retail (alongside Chris, Kat Cole, Mags.eth)
Had a chat with web3 girls frens (Elana Dickman, Renee Russo + Gaby.eth):
And did a little interview with Morning Brew on latest commerce trends:
Interesting comparison! Two issues tho: 1. NFTs don’t have to be 1/1. Obviously each one is unique in that it has a singular address/trail on chain, but plenty of projects mint multiples. 2. Impossible to know if NFTs are “at their peak”
So happy I have been able to get to know you and loved having you on the spaces!