Last week, Logan Paul, a famous celebrity YouTuber and YouTube Star made $5 million plus dollars selling a thing called NFT’s. He basically sold Digital Trading Cards of himself in the form of NFT’s.
Full form Non-Fungible-Tokens or NFT’s are a type of Crypto Tokens that cannot be replicated, duplicated or make a copy of. It’s basically an artwork that is converted into NFT Tokens, that hold specific data of ownership that makes the NFT’s extremely unique and irreplaceable.
NFT’s are NFT’s because of the Crypto Currency Blockchain called Ethereum or Ether. Because Ethereum is one of the Crypto Currencies that can hold extra or additional data and store it in its blockchain. Which is also the reason why most of the NFT’s in the marketplace is traded or sold using Ethereum Currency.
Logan Paul is probably one of the most famous YouTubers of all time, having millions of fans on YouTube. We all know how talented he is however, few knew about how entrepreneurial Logan Paul really was. As today’s news story about Logan Paul made millions selling NFT’s tells us, Logan Paul is definitely a very skilled entrepreneur.
He dropped a set of 3000 NFT’s on Feb 19th, 2021 and each of them were selling for 1 ETH or approx $1800 – $2000 Dollars USD. Right on the first day of launch, he sold 1772 pieces of NFT’s , each having a price of between $1700 – $2500 dollars and made around $3.5 million USD in sales. Just the day after he dropped those Cards, the sales skyrocketed to over $5 million dollars, selling a total of a total of 2,586 NFTs.
To thank his fans and all the buyers, he created a contest , where three buyers are going to receive 1st edition pack of Pokémon cards that are worth over $40,000 dollars. Not only that, he was generous enough to give the winners, a free tip to Los Angeles to attend a Pokemon cards unboxing stream.
I know, this makes no sense, first we see Pokemon Cards selling for over $100,000 dollars USD which I know for most people would blow their mind as to why people would invest in such a thing.
Now comes NFT’s where things even go crazier, people are now buying NFT’s of Logan Paul himself. You may ask, “Why, is the world crazy?”.
And I agree, the world is definitely going crazy but there’s a good explanation for this which we will talk about in this video.
The question really arises!.
WHY WOULD PEOPLE INVEST IN NFT’s?
NFT’s are basically Non-fungible-Tokens and its a type of Token that can hold additional information about a particular Asset, which can be an Artwork, Music or anything that is Digital.
The fact that, this additional information about the NFT’s makes the NFT’s extremely unique and so called “One of a Kind”. It cannot be copied, replaced or replicated at all. As all the ownership data is stored in the blockchain of the NFT. Because of this, even if someone on the internet tries to claim the ownership of a particular art, he cannot, because one can easily lookup the data from the Blockchain and find out who was the original creator.
The the top seven marketplaces where NFT’s are currently being sold and bought are: Rarible.com, OpenSea.com, Foundation, Christies, Nifty Gateway and Super Rare.
NFT’s have become this one way gateway of monetization for talented artists, who were struggling with money all this time. This is because now valuable art piece cannot be just duplicated. One can really stamp their name on their artwork and nobody can ever claim their art.
Another reason why people invest in NFT’s is because of the Artist itself and the ability to resell the art for a higher price. For example, Beeple’s art sold for over $69 Million dollars not because he was in luck or something. It was because Beeple was already a reputed, talented artist who had worked for companies like Apple, Coca cola and celebrities like Justin Bieber. When buyers have the information about the reputation of the artists, they are actually investing not only on the art but also the artist.
Another thing about NFT Artwork is Royalties. Creators or artists are able to set a royalty amount on their art from anywhere between 5% to 10% or ever 20%. With this, every time, their artwork is resold on the market, they get 5% to 20% royalties amount. This is one of the coolest things about NFT’s that, their work ultimately becomes worthy of creating and also selling, as as long as the art is getting resold, the original artist gets the royalties amount life long.
Many art collectors collect hundreds and thousands of artworks from various different artists in the hope that they will resell the NFT art for a higher price in the future.
HOW DID Logan Paul SELL SO MUCH OF NFT’s?
Logan Paul is no less than a genius, at least now in the case of NFT’s because he hit the NFT market, just as how an average artist would do.
Having zero background in art, or anything related whatsoever and still taking $5 million dollars from his drop of NFT’s is not a joke but an act of good market research, product development, and selling the right thing to the right consumers.
Because NFT’s are not just limited to Original Artwork, meaning you can turn even Twitter tweets, blog posts or anything into an NFT means, you can get really creative with NFTs. That’s exactly what Logan Paul did with his NFT Drops.
Of course, let’s not forget that he already has over 17 million fans on YouTube and millions more on his other social accounts like Instagram, Facebook, and Twitter just means that he already has a big advantage in terms of advertising his NFT’s.
However, people aren’t just going to buy just anything you throw at them right. If Logan Paul would actually drop something that was actually related to Art and if it were a masterpiece, it still would not do so well. You may ask why, and the answer is pretty straight forward, he is not an original artist.
If we get into the core of Marketing, understanding a consumer market is one of the most crucial things in business and marketing. There is no one better than Logan who knows his fans so well. As he calls them the “Mavericks”. He definitely has the data of demographics of his fan base on YouTube and most of his fans are definitely millennials. Logan knows that very well.
If any one is ever going to invest in a NFT or even buy an art is only if the art is relatable to the person.
Imagine, why would you get a particular type of Tattoo and not just any tattoo. I am sure, if you were to get a Tattoo, you’d choose the design that speaks to you the most, and the design that is most relatable to you. In 90% of the cases, people choose the type of tattoo that speaks about their life beliefs, experiences and culture.
This is exactly what Logan Paul did and in his own unique fanbase style.
He created, Pokemon Trading Cards Parody of Himself with pretty awesome unique designs.
This is the exact reason why creating Pokemon Cards Parody of Himself would be the best choice for his first NFT’s Drop. Because Pokemon was an anime that was very close 99% of the millennials out there. Most of us could easily relate with his NFT artworks and actually buy because not only we are his fans but also because it’s a pretty dam good investment.
There’s no reason why, he sold the full 3000 batch of this NFT’s within 1 week. Of course adding that he had the fanbase support and the stratospheric follower count.
The hype of NFT’s is big and I am going to be honest, Logan Paul, you did an amazing job selling those NFT’s like hot cakes. However, this hype of NFT’s is definitely going to last for a few more years until we see it getting cold.
I’d say, if you are an artist and if you’ve not created an NFT yet, don’t miss this opportunity. Go to Rarible.com, OpenSea or any other NFT marketplaces and show the world you work.
Who knows, you could be the next Beeple, selling art for even higher prices than Beeples.