Original: @crypto__kermit

Most NFT projects are on the verge of shutting down soon unless they do one thing. So, what is this one thing? Let’s find out…

Over the past couple of months, numerous NFT projects have shut down their operations. Including some projects that I once considered a second home and had high hopes for.

But what is leading to the demise of many NFT projects? The answer is simple: Most NFT projects lack a sustainable business model.

In fact, 99% of NFT projects heavily rely on their mint funds as a source of runway, without developing recurring sources of income for a sustainable business. It is no longer feasible for projects to continue operating in this manner.

But why are so many projects closing down now? Royalties, or rather the lack thereof. Historically, many projects have sustained themselves through funds raised via royalties. However, with the recent shift to zero royalties, this is no longer a viable option.

If you take a closer look at projects like @BoredApeYC... You'll notice that a significant portion of their funding has come from royalties, often surpassing or equaling the funds raised through mints.

Since royalties are now a thing of the past, projects are in dire need of generating income. But the question remains: How can they do it?

1️⃣Case Study #1 - Pudgy Penguins Not only are @pudgypenguins

One of the cutest Web3 brands in the space, but they have also successfully developed a sustainable business model with recurring revenue through their Toys Line vertical.

In fact, as reported by @LucaNetz, Pudgy Penguins achieved over $500,000 in sales within the first two days, selling more than 20,000 individual toys. This remarkable feat surpassed established legacy brands such as Disney, Transformers, Pokemon, Barbie, and Legos.

2️⃣Case Study #2 - Stoned Ape Crew Another NFT project that has captured my attention is @StonedApeCrew. They are actively building a bridge between Web 2 and Web 3, with a specific focus on the cannabis industry.

One thing about the cannabis industry is that credit card payments are often rejected by vendors. However, SAC has come up with a solution. They have introduced PayLeaf, a cryptocurrency payment processor that enables seamless digital transactions using the blockchain.

What sets projects like PP and SAC apart? They have successfully constructed sustainable business models that revolve around a brand-centric vertical. In short, they have effectively amplified their brand's vision and transformed it into a profitable enterprise.

FOR FOUNDERS, here are some actionable steps you can take today:

• Start with the why - identify your brand's core mission.

• Outline ways in which you can reach that vision.

• Break these down into concrete, actionable steps.

• Start executing.

FOR HOLDERS: Take a moment to evaluate if the project you're invested in has clearly outlined business models and reliable sources of recurring revenue. If not, it might be time to consider selling.

Original:

https://twitter.com/crypto__kermit/status/1670823161934356485?s=20

Original: @crypto__kermit

Most NFT projects are on the verge of shutting down soon unless they do one thing. So, what is this one thing? Let’s find out…

Over the past couple of months, numerous NFT projects have shut down their operations. Including some projects that I once considered a second home and had high hopes for.

But what is leading to the demise of many NFT projects? The answer is simple: Most NFT projects lack a sustainable business model.

In fact, 99% of NFT projects heavily rely on their mint funds as a source of runway, without developing recurring sources of income for a sustainable business. It is no longer feasible for projects to continue operating in this manner.

But why are so many projects closing down now? Royalties, or rather the lack thereof. Historically, many projects have sustained themselves through funds raised via royalties. However, with the recent shift to zero royalties, this is no longer a viable option.

If you take a closer look at projects like @BoredApeYC... You'll notice that a significant portion of their funding has come from royalties, often surpassing or equaling the funds raised through mints.

Since royalties are now a thing of the past, projects are in dire need of generating income. But the question remains: How can they do it?

1️⃣Case Study #1 - Pudgy Penguins Not only are @pudgypenguins

One of the cutest Web3 brands in the space, but they have also successfully developed a sustainable business model with recurring revenue through their Toys Line vertical.

In fact, as reported by @LucaNetz, Pudgy Penguins achieved over $500,000 in sales within the first two days, selling more than 20,000 individual toys. This remarkable feat surpassed established legacy brands such as Disney, Transformers, Pokemon, Barbie, and Legos.

2️⃣Case Study #2 - Stoned Ape Crew Another NFT project that has captured my attention is @StonedApeCrew. They are actively building a bridge between Web 2 and Web 3, with a specific focus on the cannabis industry.

One thing about the cannabis industry is that credit card payments are often rejected by vendors. However, SAC has come up with a solution. They have introduced PayLeaf, a cryptocurrency payment processor that enables seamless digital transactions using the blockchain.

What sets projects like PP and SAC apart? They have successfully constructed sustainable business models that revolve around a brand-centric vertical. In short, they have effectively amplified their brand's vision and transformed it into a profitable enterprise.

FOR FOUNDERS, here are some actionable steps you can take today:

• Start with the why - identify your brand's core mission.

• Outline ways in which you can reach that vision.

• Break these down into concrete, actionable steps.

• Start executing.

FOR HOLDERS: Take a moment to evaluate if the project you're invested in has clearly outlined business models and reliable sources of recurring revenue. If not, it might be time to consider selling.

Original:

https://twitter.com/crypto__kermit/status/1670823161934356485?s=20