Breaking down the Web3 Worlds path to onboard the next 100 million users...
In today's edition of The Ground Floor we will be breaking down the Web3 Worlds path to onboard the next 100 million users.
100 Million Web3 Users
To charge, or not to charge?
Yesterday, as the most active NFT traders basked in the bounty of BLUR tokens that they received as a reward for their usage of OpenSea's biggest competitor BLUR ~ one number stood out above all others ~ 146,823
This number represents the total number of unique wallets that have so far traded on BLUR, and while this number should undoubtedly be cause for concern for OpenSea, it also raises a bigger question regarding the future of NFTs.
📊 Dissecting This Data
Before diving into the data, it's worth highlighting that OpenSea, BLURs biggest competitor currently boasts double the number of active wallets using its platform each week per Dune.
Nonetheless, there's significant overlap in the number of users using these platforms ~ with many users such as myself using multiple wallets when interacting with these platforms.
Even without this overlap in users, and users usage of multiple wallets, at best the number of active participants in this part of the Web3 World is less than 450,000 people today.
✅ Past / Present / Future
Today's Web3 World is best represented by brands such as BAYC, Azuki & Doodles etc
What each of these brands have in common is that their brand is built on the back of scarcity and exclusivity, with thousands of consumers adopting these profile picture NFTs as their online identity as a means to communicate status and wealth.
These brands success stories were essential in onboarding the first 400,000 users to Web3, however, should the Web3 World reach its full potential, it's imperative to accelerate the number of users onboarded to Web3 in the coming years.
This begs the question, how should brands best approach onboarding new users to Web3?
It's my POV that the strategy that has worked so well in the past (exclusivity) is unlikely to be the right strategy to onboard the next 100 million users to Web3 ~ as the number of consumers who posses both the means, and the desire to spend thousands of dollars on digital art is not nearly large enough to create an industry with 100+ million participants.
Instead, the strategy that is likely needed to onboard the next 100 million users to Web3 is the inverse of what has worked so well to date (inclusivity) ~ as opposed to embracing scarcity and exclusivity, the best brands will embrace the opposite ethos.
💤 The Sleeping Giant
6,948,961 is perhaps the most important number in the Web3 World today.
This number represents the number of unique wallets Reddit has successfully onboarded to NFTs via "Reddit Collectible Avatars" as the term NFT is held in such low regard on Reddit.
For reference, that's over 47x the number of the unique wallets BLUR has had to date.
How has this collection been so successful?
First and foremost, Reddit isn't seeking to sell NFTs to its users ~ opting instead to provide its users with Collectible Avatars free of charge, with the only requirement being users willingness to use their email address to create a wallet.
This frictionless experience that removes both the requirement for seed phrases, and people paying thousands of dollars to purchase digital assets is by far the best example of how brands can successfully onboard users to Web3.
Exclusivity as a value proposition has been foundational in the formation of the Web3 World, however, an industry built on the basis of exclusivity is destined to remain small.
An industry that embraces inclusivity has the opportunity to become big.
It's my perspective that this pendulum has already swung in favor of the Web3 World becoming an industry that embraces inclusivity, despite the fact that the collections whose success has been built on the back of exclusivity as a value proposition continuously receive the lion's share of attention both inside, and outside the Web3 World.
📡 Looking Forward
As we look to the future, we can expect to see many more examples of brands successfully building programs that provide value to users with free to claim NFTs that allow consumers to communicate the affection they hold towards a specific brand online, as opposed to brands seeking to sell expensive digital assets.
Reddit may have been the first to pursue this path, but they certainly won't be the last.
💡 Web3 Roundup
1) NFTs Impact On The Bitcoin Protocol ~ A great read for anyone interested in learning about the technology that makes NFT possible.
2) Pepe Checks Future Plans ~ Post raising over $1 million USD, VincentVanDough breaks down their planned approach for Pepe Checks.
3) Yuga Labs Next Experience ~ Recommended reading for anyone interested in keeping up to date with Yuga Labs ever evolving plans.
P.S. What did you think of today's newsletter?
See you next time! — OB1👋
This newsletter is for informational purposes only and does not constitute financial or business advice to any person or entity.