YouTube plans to add NFTs as a source of revenue for creators

Topline

YouTube plans to offer non-fungible token features as a new revenue stream for its creators, company CEO Susan Wojcicki noted in its annual letter to creators on Tuesday, which comes as rivals such as Twitter and Meta have already tapped into the growing market.

Highlights

Wojcicki noted the company is focused on helping creators “capitalize on emerging technologies, including things like NFTs,” and if this materializes, it would mark YouTube parent company Alphabet Inc.’s first entry into the market .

She added that YouTube was monitoring Web3an umbrella term for the internet built around cryptocurrency, calling it a “source of inspirationfor innovation.

Last week, Twitter began allowing users to set their NFTs as their profile pictures to show off their investment in the market, and those who use the feature receive hexagon-shaped profile images rather than the normal circular-shaped images.

the FinancialTimes reported Last week, Facebook and Instagram teams are working to add functionality similar to that offered by Twitter, and are working on a separate feature that would allow users to create and sell NFTs.

Large number

$24.9 billion. That’s last year’s NFT sales volume, according to data collector DappRadar. Due to the NFT craze, the sales volume has increased significantly to $94.9 million in 2020.

Key context

NFTs are verifiable digital collectibles, or digital assets, often works of art that can be bought and sold on the blockchain. Celebrities, athletes, fashion brands, sports leagues, auction houses and even former first lady Melania Trump have jumped on the trend. Today, social media platforms are entering the market partly to give creators another source of income and partly because NFT features are “new.” digital status symbolsthat allow people to “affirm and display their membership in identity groups and their place in social hierarchies”. Washington Post reported. For example, Twitter’s hexagonal-shaped profile picture for users who use NFTs separates them from ordinary users. Technology analyst and investor Eugene Wei told the To post NFT profile pictures also signal people’s allegiance to the cryptocurrency community.

Tangent

While some NFT projects have been successful, that has not been the case for others like professional wrestler and actor John Cena. He noted his attempt to profit from the market was a “catastrophic failure” after selling only 37 NFTs out of the 500 he had forecast.

Further reading

YouTube CEO says company will explore NFT features for video creators (Bloomberg)

Facebook owner Meta dives into NFT digital collectibles craze (FinancialTimes)

Twitter is rolling out verified NFT profile pictures (CNN)

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