Why Web2 Companies Won’t Survive the Ecosystem
Whether or not you’re a newcomer to crypto, the word NFT has definitely come across your mind. NFTs really riled up in the last bull market and we saw some ridiculous jpegs selling for insane prices (over $10,000). We have all definitely been sucked into a scam once or twice, and it really is a wager to know whether or not the price you paid for an NFT is ever going to double. However, with all the hype and potentially life-changing money going down further and further as we hit the bear market, the NFT game changed and we saw a lot more web2 companies and internet celebrities coming forth and joining the ecosystem thinking they would find the same success that others just had.
But why now?
In the bear market we see an upward trend of builders creating new projects, and investors wisely choosing which project to invest in next. It’s the perfect time to settle down for a bit and focus on what’s next for the upcoming bull run. However, trends work differently in web3 opposed to web2. In the web2 ecosystem, we see a lot of fasts. Fast fashion is a perfect example. One celebrity wears a piece of clothing and all of the sudden the game has changed and everyone slowly starts to adapt to that trend. Tiktok is another great example of how quickly an old song, meme or saying can quickly be adopted, but sometimes people are too slow and miss out altogether. That’s where the difference comes in. We are still so early with web3, and because of that it has become harder for companies to quickly adapt to these trends (think NFTs) as quickly as they can adapt to new fashion trends. Firstly, because they don’t understand it, and secondly, they really are just trying to jump on the hype wagon for the shortest time.
Terms and Conditions ….. huh?
A mega web2 company recently dropped an NFT launch which instantly dropped below mint price (are we surprised?). Despite them SOMEHOW convincing people to invest in this 30ETH “scam”, what really surprised me were the terms and conditions attached to the sale. Web2 companies are really trying to suck everything they can out of web3 by taking IP rights off of NFT owners through their terms and conditions. It just goes to show how out of touch they are with the web3 ecosystem, where DeFi and secure ownership of our assets are our top priorities.
If we think about how the web3 ecosystem runs so efficiently, the answer is really simple. Community. Without a community to back them, web2 companies don’t stand a chance transitioning to the web3 ecosystem and it really is showing. It just begs to understand how long they will keep trying before they get the hint that they have no idea what this ecosystem is really about.
What are your thoughts on current web2 projects trying to make their mark in the web3 ecosystem?