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  • 🎯 Weekly Recap: Meta Sunsets Digital Collectibles, SVB Threatens Web3 Adoption

🎯 Weekly Recap: Meta Sunsets Digital Collectibles, SVB Threatens Web3 Adoption

Also: Businesses to Increase Spend on MarTech, Hot Takes on Web3 and NFTs at SXSW, and more!

March 17, 2023

Happy Friday! Welcome to The Web3 Marketer, where I help brands and marketers stay ahead of the web3 curve. Every week, I bring you top stories on web3 & digital collectibles across consumer & loyalty.

Today's write-up is 1,451 words, a 5½-minute read.

This week’s TL;DR:

  1. 📷 Meta will sunset its digital collectibles

  2. 🎯 Businesses to increase spend on new MarTech in 2023

  3. 🏦 SVB scare spread across the web3 ecosystem

  4. Bonus: 🌶 At SXSW, marketers hot takes on web3 and NFTs

📅 Upcoming events: SXSW (Austin, ongoing until Mar 19), Outer Edge | LA (Mar 20-23), Paris Blockchain Week (Mar 20-24), NFT Melbourne (Mar 23)

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The Big One

🔝 Meta will sunset its digital collectibles features on Instagram and Facebook

The short-lived experiment: NFT support only began testing in May, and rolled out wider expansion for Instagram creators in 100 countries in July.

  • Users were able to create, show and sell NFTs at no fees until 2024.

”Creating opportunities for creators and businesses to connect with their fans and monetize remains a priority”, tweeted Meta lead Stephane Kasriel:

  • ”Focus on areas where we can make impact at scale, such as messaging and monetization opps for Reels”

  • ”Continuing to build (…) on our apps, both today and in the metaverse”

The big picture: Layoffs and TikTok.

Meta’s second round of job cuts was announced this week as a part of 2023 “year of efficiency”

  • ~10,000 jobs in policy, marketing, and communications teams to go away by April

Meta disclosed the NFT resources will shift toward products like Meta Pay, as well as features that enable creators to earn money directly on Meta platforms, such as tipping, and other ways for creators to earn ad revenue on Reels.

  • This comes after TikTok announced last week a new feature called “Series” which will allow creators to paywall premium content

The bottom line: Rather than a slow cool-off of the metaverse bet, we’re watching an intensifying battle for creators... At least until TikTok gets banned.

+ For more context, check out the update Zuckerberg shared with employees.

By the Numbers

📊 54% of SMBs will increase spend on new MarTech in 2023 despite macro downturn

As the marketers’ motto goes: 

❝

“When times are good you should advertise,
when times are bad you must advertise.”

Overheard at SXSW 2023

But on a more practical note, much is driven by advancing tech: niche use cases, creator/freelance economy, no code & AI.

Marketers also have strategic reasons: growth and competitiveness engine during tough times, more foundational and evergreen vs media budgets, organizational capital.

+ For deep dive, check out my thread here.

Crypto Twitter Explained

🐦 The near-collapse of Silicon Valley Bank scared the entire web3 ecosystem as stablecoins lost peg

Beyond relieving the entire tech ecosystem, the U.S. regulators’ Monday announcement also saved hopes for web3 mass adoption.

  • As recapped here, SVB is was a systematically important bank that got in trouble when its investment strategy backfired with rising interest rates.

Domino effect for web3: Stablecoins and their collateral held in traditional banks, including SVB.

Stablecoin cryptocurrency is pegged 1:1 to a fiat one, with nominal value considered ‘fixed’ and not fluctuating as other cryptos

  • Makes it easy to keep savings in USD on the blockchain or transact in USD denomination vs., let’s say, volatile bitcoin.

This works because the stablecoin issuer backs the virtual coin 1:1 with real dollar ‘reserves’ stored in a traditional bank account.

  • You could always ask to redeem the ‘real’ $1 bill, so you have confidence the virtual token is worth $1 in real life.

The problem: Circle, one of the largest stablecoin issuers, announced it had $3.3B of its reserves stuck on SVB, meaning the full redemption was no longer guaranteed.

  • Holder's Circle’s coin, USDC, assumed some value may have been irrevocably lost, started to panic and sold off at prices below $1, leading to the coin depegging below $1 to as low as $0.88

The big picture: A potential downfall could spread to other stablecoins, destroying a critical element of web3 infrastructure (and also consumer trust in crypto-based products that touch finance).

  • Capital would flee web3 markets, hurt any NFT trading activity, stifle longer-term innovation and new consumer products, and detract builder talent.

Luckily, Circle’s USDC returned to a ~$1 peg after Sunday.

✨Bonus Content✨

🌶 SXSW 2023: I asked mainstream marketers and creators their take on web3 and NFTs

+ For more takes, including Arby’s, Uber Eats, and Southwest, check out the full 🧵 thread.

Top Headlines

🛍 Consumer & Mainstream

  • Early signs of optimism in 2023 point to a new opportunity to build better NFT infrastructure to support digital assets and pave the way for increased utility and adoption (Yahoo)

  • A plaintiff in Florida won a $1M case against an anonymous hacker after serving court papers via NFT. While it remains unclear how the money will be recovered, it sets a federal court precedent (Decrypt)

  • Meta, the parent company of Facebook, is working on a standalone, decentralized text-based app where creators and public figures can share timely updates (Coindesk)

🤖 Metaverse

  • ⭐ Just 18 months after renaming itself from Facebook to Meta, the company is shifting focus to advancing AI and building it into its products (CNN)

  • Apple’s upcoming “mixed-reality” headset will be the first computing platform steered entirely by CEO Tim Cook due to high stakes as many insiders consider it a next-generation hardware product (FT)

  • Courses in the metaverse struggle to compete with real world as students are “underwhelmed” by the relatively basic quality of the graphics offered by virtual learning applications (FT)

💍 Fashion & Luxury Goods

  • ⭐ As brands continue to explore digital fashion, the target markets for these products are not yet clear and must evolve for mass adoption (Coindesk)

  • YSL Beauty’s web3 loyalty program uses NFT sales to drive purchasers to the brand’s owned channels, starting with the enrolled 24,000 wallet owners (Glossy)

  • The Hermès vs Mason Rothschild saga continues as the artist filed an opposition to the brand’s injunction to block him from promoting and selling his Metabirkins NFTs, and instead proposed to place a disclaimer on his messaging and NFTs (VogueBusiness)

🎬️ Entertainment & Media

  • ⭐ The SXSW festival pivots to new crazes - including ChatGPT and AI - replacing last year’s conversations, which were dominated by NFTs and the metaverse. “NFTs, while a hot topic last year, never really hit the CMO strategic priority list.” (AdAge)

  • A digital weapon ‘skin’ in Counter-Strike, a popular first-person shooter, has sold for around $160,000, marking one of the biggest public sales in the game’s history and bringing back the debate on applicability of NFTs also in traditional, not just web3, gaming (Dexerto)

🏈 Sports

  • ⭐ Australian Open embraces the metaverse and web3 for increased fan engagement by tokenizing final “bounce” of winning points, building a stadium replica in Decentraland, and offering IRL perks to NFT holders (Coindesk)

  • NFL released Super Bowl LVII digital engagement numbers notching a pair of records and billions of interactions across seven social media sites, including record-high Reddit NFT claim rates (SBJ)

  • The key to consumer engagement in business projects with decentralized decision-making is: participation opportunities, incentives, authenticity, executives’ commitment, and existing communities (HBR)

🛠️ Web3 MarTech

  • The leading CRM provider, Salesforce rolled out a platform for big brands and enterprises to create NFTs and manage NFT loyalty programs (Salesforce)

  • To be more consumer-friendly, marketers are relabeling Web3 NFT to focus on “ownable, personalized and immersive content” and not technology in the background (FranchiseWire)

  • While often bundled together, NFTs, the metaverse, and web3 aren't the same things as immersive spaces aren’t reliant on the blockchain or cryptocurrency (MarTech)

💰️ Deals

  • Matchday in $21M in Seed funding to develop a suite of soccer games in tandem with Leo Messi (Decrypt)

  • DressX raised $15M in Series A funding to expand its digital fashion assets platform (TheBlock)

  • Republik raised $3.5M in Seed funding to connect content creators with their audiences and handle monetization processes (Cryptoslate)

  • Tilia secured a strategic investment from J.P. Morgan to expand financial services in a digital economy world, including the metaverse (TechCrunch)

New 🤓 Guides and Tutorials

  • What Is Decentralized Identity? The Pillar of Web3 (Blockworks)

  • A Beginner’s Guide to NFT Quality Assessment (Metaversal)

📚️ For the Weekend

  • 📃 AI and Crypto Are Combining to Create Web3's 'Multiplayer Era' (Coindesk)

  • 📃 Meta’s ‘Metaverse’: Mass Adoption, The Human Psyche, and Parallel Lives (Substack)

  • 🎙️ Building Web3 Fan Communities (Apple Podcasts, 52 min)

  • 🎙️ Breaking Down Web3 Gaming, Wallet-as-a-Service, and Tokenization (Apple Podcasts, 38 min)

New 🗃 Additions to the Web3 Tools database

Meme of the Week

Question, feedback or collab? Send me a note.

🔚 End Credits (AKA Also Made The News):

🛍 Consumer & Mainstream 

• Nissan Files 4 New Web3 trademarks, Trials Sales in the Metaverse (CoinTelegraph)

• UBank Launches Upstream-powered NFT Campaign at "Good For Country" Charity Concert (Yahoo)

• First NFT Real-World Stores Are Setting a Phygital Trend (CoinTelegraph)

• NFTs in Hospitality: Hype or a Model for the Future? (ET BrandEquity)

• Web3 Startup Helps Indonesia’s Tourism Economy Survive (Blockworks)

• Joe Rogan Wants to Right-Click Save Your NFTs (Twitter)

• China's Parliament Member Calls for NFT Regulations at ‘Two Sessions’ (CoinGeek)

• Should Your Business Launch an NFT? Here Are 4 Things You Need to Know (Entrepreneur)

• What Rights Come With Your NFT (Forbes)

• The Psychology of NFT Collecting: The Appeal of Ownership and Exclusivity (Finance Magnates)

• Meta v Mass Adoption: An Introduction to NFT Trends (NFTEvening)

🤖 Metaverse

• Sotheby’s to Auction ‘Oddly Satisfying’ Reddit-Inspired NFTs In the Metaverse (Decrypt)

• Are They for Real? South Korean Girl Band Offers Glimpse into Metaverse (Reuters)

• TWICE Teams With Roblox for ‘TWICE Square’ (Billboard)

• Decentraland Metaverse Fashion Week 2023 Set to Release in March (CoinRepublic)

• KPMG: Tech Leaders Interested in Metaverse’s Future, Not Its Present (VentureBeat)

• Ignore the Hype That We’ll All Live in the Metaverse. Let’s Use Virtual Reality, but Hardly At All (WEForum)

• Your Gen Z Marketing Strategy Needs AR (AdWeek)

• From 'The Last of Us' to 'Mario': Top 7 Potential Fortnite Collaborations That Can Break the Internet (EssentiallySports)

• Examining State of Metaverse, Web3 in 2023 (SBJ)

• Will the Metaverse Actually Become a Commercial Thing? (VanillaPlus)

• How Companies Can Prepare For The Metaverse And Build Revenue Streams (Forbes)

• 13 Surprising Changes The Metaverse May Soon Bring To Businesses And Consumers (Forbes)

• Can the Metaverse Make a Comeback in 2023? (CampaignAsia)

• Death in the Metaverse: Web3 Aims to Offer New Answers to Old Questions (CoinTelegraph)

• Game Plan: Why the Metaverse is an Opportunity for Digital Transformation (Engineering)

• Metaverse Ushering in the Next Generation of Mental Healthcare Services (CoinTelegraph)

• What Could the Impact of Fraud in the Metaverse Be? (FinTechGlobal)

💍 Fashion & Luxury Goods

• The North Face China Launches Digital Collectable Campaign via Mccann Shanghai (BrandingInAsia)

• Breitling, Sourcemap and Arianee Offer NFT-Backed Traceable Products (RobbReport)

• A New Digital Fashion Contest by Dolce & Gabbana (CryptoMode)

• Michael Kors Talks Fashion, Future, Philanthropy and ‘Project Runway’ (WWD)

• House of Blueberry Shares Secrets to Web3 Fashion Success (XRToday)

• Aéropostale’s Expansive Metaverse Strategy Kicks Off with Tesla Giveaway (MarketingDive)

• Vivienne To The Metaverse! The Future Is Bright For Vivienne Tam (FashionWeekDaily)

• Puma is Pushing Further into Web3 and Fashion (Glossy)

• Streetwear Web3 Brand DRx Is Dropping Its Latest Collection of Web3 Inspired Wearables (Blockster)

• Victoria’s Secret Brings Back Iconic Fashion (MarketingInteractive)

• DressX Talks MVFW Plans, NFTs, Wearables and AR (Yahoo)

• What is Nike's Metaverse? An Introduction to Nikeland (XRToday)

• Clone X RTFKT x Nike Air Force 1 Forging Event 4.24.23 (Twitter)

• Why Waning Interest In The Metaverse Heralds A New Direction For Digital Fashion (JingDaily)

• Meflex Launches NFT Marketplace and MEF Token to Revolutionize Luxury Retail (InvestorsObserver)

🎬️ Entertainment & Media

• Sesame Street Launches First NFTs on VeVe with Cookie Monster! (NFTEvening)

• … but Some 'Sesame Street' Fans Say Cookie Monster NFTs Don't Honor the Show's Original Legacy (NBCNews)

• NFT Company Palm Teams With Pussy Riot to Foster Activist Art (Coindesk)

• Web3 Producer Goes Hollywood as His Short Film ‘An Irish Goodbye’ Wins an Oscar (Decrypt)

• Playboy Lost $4.9M on Ethereum It Accepted as NFT Payments (Coindesk)

• Pokémon Might Be Looking into NFTs and the Metaverse, and the Community is Not Happy (DotEsports)

• Ex-Riot Games Execs Raise $55M for New Studio, Say ‘No Fucking Thanks’ to NFTs (Decrypt)

• Stop Calling Them NFTs: Web3 Gaming CEO Speaks Out Amid Gamer Backlash (Decrypt)

• Games and the Metaverse—and Their Three-Pronged Problem (CoinGeek)

• Jimmy Fallon Wants to Overturn Yuga Labs Subpoena (BeInCrypto)

• 'The NFT Bubble has Popped, but There’s Still Untapped Potential in Digital Art' (Art Newspaper)

• French Collective GXRLS Revolution Aims to Bring More Women Into NFT Art (Decrypt)

• NFT Artist Beeple Opens Digital Art Gallery in Charleston, SC (Coindesk)

• NFTs for Free: Artists Giving Away Tokens to Reward Fans (Billboard)

• How Musicians Can Still Leverage Music NFTs (Hypebot)

• Music NFTs: Passing Fad or Future of Music? (Substack)

• Job Posting for: Lead Product Designer - NFT | Ticketmaster (LinkedIn)

• Rec Room Hosts Immersive Music Festival in Virtual Reality (Mixed News)

• Entertainment Industry Continues to Sound out the Metaverse (TechMag)

• Was NFT Artist Wrong to Think She Could Be Exhibited at the Louvre? (ARTnews)

• New Lawsuit Accuses Social Media, YouTube Influencers of Hyping FTX Without Proper Disclosure (TheBlock)

🏈 Sports

• DraftKings Sued by NFT Owners Over ‘Securities Exchange’ (BloombergLaw)

• NASCAR Takes on Roblox (NFTEvening)

• Alfa Romeo F1 Team Stake Races into the Metaverse with Everdome (Sauber)

• Ultimate Champions Welcomes the World's Second-Largest Basketball Property! (BSC)

• Fan Tokens: A Look at Football Teams and Their Cryptocurrency Performance (Coindesk)

• Athlete Fan Token Platform Blockasset Migrates to Chiliz Chain (SportsPro)

• Get Your Virtual (and Real-Life) Wallets Ready for Financial Innovation in Sport (SportsPro)

🛠️ Web3 MarTech

• A Followup to a Tale of Two QR Codes (Substack)

• Mirror Launches New Feature to Empower NFT Creators (Coinspeaker)

That’s all. See you next week!

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