Podcast Summary
Discovering NFTs at SXSW in 2016: Gary Vaynerchuk's interest in NFTs began at SXSW in 2016 when he learned about CryptoKitties and the concept of owning digital assets, but he didn't fully understand the technology until Rohan introduced him to NBA Top Shot during a busy time.
Gary Vaynerchuk, an entrepreneur, investor, creator, author, speaker, and potential future owner of the New York Jets, first learned about NFTs and crypto at South by Southwest in 2016. He bought Bitcoin and Ethereum earlier due to their potential as platforms, but it wasn't until he discovered CryptoKitties and the concept of owning digital assets that he became interested. However, he didn't fully understand the distinction between blockchain and the internet, and didn't get deeply involved until Rohan from Top Shot introduced him to NBA Top Shot during a time when he was focused on keeping his business afloat. Despite his fascination, he couldn't fully invest in the NFT space due to other business obligations. This experience highlights the importance of understanding new technologies and being open to exploring them, even when faced with distractions and challenges.
Gary Vaynerchuk identified NFTs as a cultural phenomenon in 2020: Gary Vaynerchuk predicted NFTs would become popular due to technology, community, human behavior, digital assets, contracts, sports cards, young investors, digital games, and social media.
During the summer of 2020, Gary Vaynerchuk identified the potential of NFTs (Non-Fungible Tokens) becoming a cultural phenomenon based on the intersection of technology, community, and human behavior. He recognized the lack of friction in owning digital assets and the increasing popularity of digital currency and social media. The utility of contracts and the potential for communication and social flexing in the web 3.0 world also played a significant role in his prediction. Key factors that contributed to this trend included the explosion of sports cards, the rise of young investors, and the dominance of digital games and social media. Ultimately, Gary believed that people would buy NFTs to communicate with their friends and express their identity in a new and scalable way.
Creating value for NFT holders and building a community: Successful NFT projects prioritize community building and adding value to NFTs, rather than just relying on market speculation and short-term gains.
Successful NFT projects require a strong community built around valuable characters or IP, rather than just short-term investment and flipping behavior. Gary Vaynerchuk, in his discussion, emphasized the importance of creating value for NFT holders and building a community around his characters, such as Patient Panda and Motivated Monster. He believes that when the market corrects or experiences an "NFT winter," creators should add more value to their NFTs instead of just giving away more. Gary's strategic approach from day one involved planning access and events for his community to ensure engagement and loyalty, even during market downturns.
Providing value to NFT holders beyond the initial investment: Successful NFT creators offer additional benefits to their holders, enhancing the value of their investment and fostering community engagement.
The creator of a successful NFT project has the power to provide additional value to their original holders, beyond the initial investment. This can take many forms, such as lifetime passes to an amusement park, business partnerships, or access to the creator themselves. The creator's reputation and personal values are important considerations in making decisions, and they can use their project as a means of creating value for their community, even in the face of potential failure. The creator also keeps an eye on the broader crypto market, but their primary focus is on the NFT landscape and providing value to their project's community.
NFTs: Here to Stay Despite Risks: NFTs have potential but require caution but investors should be prepared for fluctuating values and accept risk.
NFTs (Non-Fungible Tokens) are here to stay as part of our digital lives, despite the risks and volatility. The speaker believes that blockchains will bridge to each other, ensuring the survival of NFT projects. He emphasizes the importance of the founder's role in determining a project's success. The speaker also warns that investing in NFTs requires disposable income, as their value can fluctuate significantly. He compares NFTs to collectible toys, with some projects experiencing momentary success and value, while others do not. Ultimately, the speaker believes that NFTs are an industry with immense potential, but investors must approach them with caution and a willingness to accept risk.
Understanding NFTs requires time and research: To succeed in NFTs, evaluate founders and projects, identify promising subgroups, and consider a 'set and forget' approach for long-term investment.
While the NFT market can offer significant potential for financial gains, it requires a deep understanding of the space and a substantial time investment to make informed decisions. The speaker shares his experiences of missing out on valuable investments in comic books and toy collections due to misjudgments. He emphasizes the importance of evaluating the founder and identifying promising projects, but acknowledges that not everyone has the time or inclination to dedicate extensive effort to NFT research. He suggests that those who are interested but time-constrained can still participate by identifying subgroups of projects that show promise and adopting a "set and forget" approach. The speaker's own success with Bitcoin illustrates the potential rewards of long-term commitment and a strategic investment strategy.
Investing for personal reasons and excitement: The speaker invests for various reasons including personal interest and excitement, and emphasizes the importance of enjoying the process rather than solely focusing on financial gains.
The speaker invests in projects for a combination of reasons including supporting artists, high risk, high reward potential, and personal interest. He believes that many investors are day trading and have different goals than the founders of projects. The speaker also discussed his personal investment strategy, which involves keeping some funds for living expenses, betting on himself, and focusing on investments that excite him rather than safer options like real estate. He emphasized that his North Star is not to maximize money but to enjoy the process. Additionally, he warned against founders overly focusing on short-term gains and the potential negative effects of constant communication with a day-trading community.
Understanding your core strengths and passions: Strive for authenticity and alignment with personal values and interests in career pursuits
Individuals should focus on understanding their core strengths and passions when considering career paths, whether it be entrepreneurship or investment. The speaker, who identifies as an entrepreneur, emphasizes the importance of self-awareness and being true to oneself. While some may be drawn to the allure of being an investor, the speaker encourages considering the fulfillment and enjoyment derived from being an operator or builder. The speaker's own experiences have led him to take pride in his role as an operator, despite his public persona as a social content creator and investor. Ultimately, the key takeaway is that individuals should strive for authenticity and alignment with their personal values and interests in their career pursuits.
Backing the right founder and trend: Investing in the right founder and trend is crucial for success. Aligning both the jockey (founder) and horse (business) is key.
Identifying the right founder and trend is crucial for successful investments. Gary Vaynerchuk shared his experiences of passing on Uber despite being close to the founders, while his investments in Facebook, Twitter, Tumblr, and Coinbase turned out to be huge wins. He emphasized the importance of backing both the jockey (founder) and horse (business) when they align. Vaynerchuk also reflected on the emotional significance of building his father's business, which led to a substantial financial improvement for his parents, making it the greatest accomplishment in his career. Despite his current successes, he acknowledged the sacrifices made during the first 12 years of his career.
Growing a Family Business: Personal and Financial Rewards: Building a family business offers invaluable memories and relationships, while also providing personal and financial growth.
Building a family business can be incredibly rewarding, both personally and financially. The speaker shares his experience of growing a $3.8 million business to $65 million by the age of 34, and how he feels grateful for having had the opportunity to contribute to his family's legacy while also pursuing his own goals. He emphasizes that the shared experiences and connections made during the building process are invaluable and bring the most joy. The speaker also highlights that while the money earned may not come with you, the memories and relationships built do. Overall, the speaker encourages the importance of balancing selfless contributions to a family business with personal growth and accomplishments.
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