Huobi Ventures Weekly Report #48

Huobi Ventures Weekly Insights

Insight provided by Juliet of Huobi Ventures

NFT, the Web3 Beacon of Social Tracks

The user increment of web3 is getting smaller and smaller. How should teams solve this thorny problem?

In the Crypto world, companies always talk about how to attract more users. Although the current Crypto Eco is in vigorous development, the number of users is still too small compared with the traditional fields. A thorny problem that people are facing is how to find a way to increase the number of users when encountering a development bottleneck.

The industry players have tried a lot lately and it seems that Reddit NFT has opened our minds to increasing the number of users in Crypto. By the end of October, the number of wallets created on Reddit has reached 2.88m, while the number of wallets created on Open Sea was only about 2.3m. From the distinct difference, we can see the huge number of community users and room for growth brought by Web2 giants.

However, we can find that there are more and more Web2 Giants trying to jump into Web3, and many of them choose NFT as their first foray into the Web3 world. Giants like Twitter, Youtube and Ebay are all trying to do something to connect their communities more tightly by adding NFTs thus to promote more gameplays and scenarios.

we can briefly summarize Reddit’s successful cases:

1) Easy to use. Web2 users can easily equip wallets and hold NFTs without additional process of learning;

2) Low interaction cost. Different from general projects deploying NFTs on Ethereum, Reddit deploys NFTs on Polygon, offering better, cheaper and less sensitive transaction experience;

3) Artist Incentive Program. Reddit returns 95% of project revenue to artists to support the

creation and development of artists and community members;

4) Huge community. Reddit is one of the largest social APP in the United States and has a huge community base. Last year, the event of shorting GameStop by retail investors was initiated by community members on Reddit.

In general, there are increasing signs showing that the giants of Web2 are trying to enter the field of Web3. NFTs have obvious identity, social function attributes that condense the community and are very convenient for social entertainment companies to deploy. I believe, in the future, these Web2 giants will enter more and deeper crypto fields, and NFT is expected to be the first beacon for them to enter.

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#NFT #Web3 #Web2

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Huobi Ventures

Huobi Ventures

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Focus on Huobi’s venture investment portfolio and supporting innovative blockchain projects through long-term strategies. Twitter:@HuobiVentures