IlluviTalks #11 - How Reddit Sold “Collectible Avatars” to MILLIONS of NFT Sceptics

Is Reddit selling millions of collectible avatars a one-off or a trend setting event? Based on Reddit’s mass market success with “Collectible Avatars” should the crypto industry move away from “NFTs”? Will all other social media platforms copy/paste Reddit’s collectible avatars model?

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Pacheto - https://www.youtube.com/channel/UCCyQGxG450U5_aQZgQe_EVQ

ABOUT THE GAME
Illuvium is an exploration looter and collectible autobattler game built on the Ethereum Blockchain, releasing on PC and Mac in 2022. Play and earn in a graphically-rich, vividly-realized sci-fi adventure and conquer the wilderness to help your crash-landed colony flourish.

Race across stunning alien landscapes on your quest to uncover the cause of the cataclysm that shattered Illuvium. Hunt and capture Illuvials, powerful creatures who have ruled the land unchallenged until your arrival. Train and fuse your Illuvials into powerful evolutions. Build your ultimate Illuvial team to take into battles and tournaments in PvE and PvP Arenas. Use your creativity to build unique synergies to outsmart your opponents and progress to the top as become the most legendary Ranger on this planet.

Illuvium’s collectible NFT games feature crypto token assets with functionality and a gaming use case, interoperable across the Illuvium universe and the larger DeFi metaverse. The decentralized NFT collection offers players a user-maintained custody never before possible in mainstream gaming.

#illuvium  #reddit 

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Content on the official Illuvium website and social media does not constitute financial advice. You are responsible for doing your own research and seeking independent professional advice about your involvement with the Illuvium DAO and any Illuvium products or services. Illuvium products (such as tokens including ILV, sILV2, Land NFTs) and services (Illuvium game) are not financial products and accordingly the Illuvium DAO is not licensed by any regulator. Please be on constant alert for scams. You should read and ensure you understand the terms and conditions available on the official Illuvium website before engaging with the Illuvium DAO or any Illuvium products or services.

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Transcript

[Music]

[Music] foreign [Music] gotta love that eluvium soundtrack goodbye soundtrack because hello episode what's up everybody Andrew wall here host and executive producer at alluvium and today we've got a louvatox did you know that you probably missed the biggest story to ever happen in nfts it just happened Reddit nfts but they aren't using the term nfts no no no what are we talking about in this episode of olufa talks well first of all I promise you'll learn at least two new insights about blockchain technology and gaming and the future of media guaranteed or your money back here's what's going on Reddit nfts are they reversing the nft downtrend are nfts a dead term now because Reddit was so wildly successful and will every other social media platform on earth have to copy what Reddit just did because it was so insanely successful well how do I what do I mean so insanely successful how about 3 million million million new wallets from a community that literally hated nfts bottom up like like hotcakes completely sold out three million new Wallets on Reddit absolutely insane really quick before we talk about nfts for all you djans out there thinking this is some kind of financial advice you couldn't be more wrong this is just a show educating people about gaming technology we're going to share insights with you you need to go talk to your own financial advisor and realize listening to some dudes talk about nfts on the internet and digital Collectibles uh-uh not Financial advice but I've got an expert panel you don't just have to listen to me jibba jabber about all of this our first gay guest is a heavy hitter his name's David AKA pachetto entrepreneur investor content creator he's got millions of subscribers across Infinity channels let's bring him in here what's up buddy what's up guys how are you doing yeah doing great me too guys yeah just to specify it's in a Spanish-speaking countries all but so um sorry if my English is not that perfect but I will try to do the best I can so thank you for inviting me in this panel I'm so glad to be here guys and I hope you I can share you know good info but not Financial advice remember but we wouldn't know the first thing about financial advice and he's being humble he's got gazillions of subscribers and he'll apologize about his English but as you can tell he speaks

another Creator Brandon a from Gizmo slip a content creator that makes Tech and crypto videos congrat congratulations not congratulations congratulations on hitting 600 million views dude good job thanks I really appreciate inviting me to come on this talk I mean it's it's a really great opportunity to interface with the community I've been following eluvium for so long and I can't wait to see and and play a movie because that's a I'm a hardcore gamer thousands of hours in games and uh big into crypto for about a year now um and just getting more and more experienced in the in the the space and reading up about it uh detailed research on it especially on upcoming projects and I you know I'm most excited about eluvium overall as a project I think it's going to be uh epic I mean ethereum obviously is probably my number one project but alluvium is like my number one like small project you know like more about Pet Project you know um so anyway it's uh yeah let's keep can't wait to participate in this talk thank you for joining us man I really appreciate it so why would I bring these giant creators in here that also cover crypto well because this story today is the intersection of crypto and blockchain and social media and these guys are literally Titans on social media speaking of which we've got this guy that works for this blockchain game also he works with influencers on social media you might have heard of him before tsg in the house what's up buddy hey hey guys what's up what's up awkward I love the forced awkward there that's great yeah yeah I appreciate you uh having me back on Andrew I'm really excited to have this conversation um also my English is not very good as well so I do apologize if if I struggle with that as well but I appreciate you guys giving me a chance I'm looking forward to the conversation this guy's English is so much humble yeah so much humble from you guys too much humble too much humble okay okay let's show them what's happening on Reddit right now I said three million new wallets came out here it's completely sold out millions and millions of dollars market cap on nfts Reddit isn't even using the term nfts anymore let me just show you what's going on this is my profile and you guys can cut in here and help me provide context so on Reddit if you didn't already know it has 50 million users Reddit has decided to implement let's call it traditional social media profiles let's call it where you can have your own Banner you can have your own avatar you can have your own links below and you can post content in a feed and people can follow you becoming kind of you know Twitter Youtube hybrid-esque but the interesting bit here this nft that you see here they don't call it nfts it's called an avatar collectible was an airdrop that Reddit dropped on their Community to millions of users and right here you can view your collectible you can make it into your avatar you can keep it on the Reddit wallet that they provide you or you can send it off chain and go sell it somewhere and so what a lot of people are doing with their avatars is they're obviously taking them over to open C and we're singing nine bangers ten bangers 20 bangers you name it but there's some there's some features here that are going to be interesting that folks are uh going to be familiar with if they're familiar with the louvitars and that is styling your avatar and changing it and dressing up your avatar in the ways that you want to so for example here under my profile this is my stuff and this is the singularity you can choose which of your accessories you want to put on your avatar and you can hit save you could also go explore other avatars that you might have maybe I want to put on the pants of this one and the mask of that one then I could hit save and you can mix and match different avatars known as Avatar Collectibles not known as nfts here and put them all together they also have a digital shop that you can notice the collectible avatars here in made by independent creators each unique and limited that's another thing that happened here with this Reddit strategy that was incredibly useful on Reddit they got top Reddit artists from the top subreddits on Reddit to make these avatars so they weren't just generating them as a mega Corp and then selling them to their users they had their own artists from their own communities create this it came from the community and the community is loving it any other context you guys feel like I should share it and obviously we can cover more here in a moment about what Reddit has done and why it is now blowing up it's like the top nfts there's now Reddit nft Maxis now evidently because it was so wildly successful anything you want to add to that context the most important thing I think to recognize is that there's uh these four elections you have um the drip like uh offerings uh like a techno one and another like there's four different categories and those when you are an active user on Reddit and you have this excellent amount of cards they hide the requirements to be able to be eligible to Mint your own free nft but once you hit that minimum requirement you're able to get your free NFC uh minted on the blockchain and you can you have to have a polygon wallet though before you can do that and they call it the Reddit Vault they don't tell you it's a crypto wallet they just say these Avid Reddit collectible avatars are blockchain backed you know no so no crypto no nfts none of this terminology that people don't like they just say there's blockchain technology on the back end you don't have to worry about any of that though

I'm gonna say I just want to mention one more thing the Gen 2 uh Avatar collectible avatars are um limited edition so there's between 100 and a thousand of them and they're like copies of one piece of art that people can use as their uh their Avatar basically as our core profile picture and those are sold between 10 and 100 and then those are being those are the ones that are growing up like blowing up from like uh tens of thousands of dollars for like especially the really limited ones like some um like the faustling and there's uh like the Midas one for like nine eth on Open Sea there's only 100 of those um but you can see right there there's uh your Vault and so there's there's also um erc20 tokens specific to subreddits now as well on Reddit very interesting they've implemented a token system for each subreddit we can get I don't want to confuse people but they've also implemented a community points system notice how they're not calling it governance tokens nothing notice how they're not using any of this defy terminology it's Community points are now on mainnet do you see the words ethereum token governance defy or blockchain or crypto anywhere in these statements Reddit is crushing it and they took a community that otherwise hated all of that technology to now widely adopt it within each of its communities because they didn't say at all that it had anything to do with crypto which is fascinating let's get into our we can get cover more context I want to get into our discussion topics because there's a number of huge implications from this is Reddit responsible for maybe reversing the dead nft Trend with this huge move and what I mean by that and I want to take it over to David AKA pachetto is Reddit selling or opening up millions of new wallets for collectible avatars a one-off or is this a trend setting event that could change the way nfts and digital Collectibles go moving forward I mean I think bfps are back and what I mean that is like um I remember for example in uh you know um crypto Banks for me is one of the best nfts you can have okay and because at the beginning they just pfp and nothing else there is no utility attached Etc but it's okay there's no problem there were the first one doing that and you know I think it's one of the best probably nfts in the long run having said that I love the way I'm not sure if they don't intentionally or not probably yes I mean Reddit changing the name of everything because you know it's it's more a different approach for the same product let's say you know but even if they do do it I mean intentionally or not they have now uh well all attention from the nft market out there so is this the you know the new bull market is going to come now not sure but definitely uh big social medias are going to move in that direction they made a case for example I think Twitter is going to start doing a wallet soon actually Reddit doesn't say wallet they say bold another it's a vault not a wallet that's right and it's and just so all the users so everybody knows out there when you put your nfts in the Reddit Vault it just happens automatically and it automatically generates a key all the security aspects for you then you can choose if you want to move that to your own wallet off of their platform if not it's in their vault not one of those wallets I've heard of that are destroying the Earth with uh you know minting or whatever story people heard it's just a vault which it sounds really safe so I think they very deliberately you said I'm not sure if they deliberately chose this news terminology they very deliberately as a marketer I can tell you they very deliberately took whatever the mainstream words were for nft and crypto and said what is a word nobody's using right now that means the same thing that's our strategy yeah right right let me ask the next question here then because this begs the question um is the success of reddit's Avatar Collectibles kind of bullish for nft gaming in general like the the adoption of nfts in the gaming sector or is this Reddit thing just isolated to Reddit is this just profile pictures is this not really going to spill into the world of gaming as somebody who's put in gajillions of hours and hours into gaming Brandon from gizmoslip what do you think um I think that it is going to make a huge difference I think something that's just absolutely crucial you have to recognize about these Reddit uh avatars is that uh they basically function as your profile picture but you can't actually put like a JPEG or some random image which is one of the main issues I think on existing social media like think like Twitter and Instagram and Facebook you can just copy anyone's nft and pretend like oh yeah I've got this million dollar nft well in the Reddit uh scenario you can't fake owning the nft because they're all you know the profile pictures are like a sign from the blockchain technology for the Authentic Collection and so only it's like if you if you show that you've got like this nine eth uh Reddit Avatar like you actually have it like people know instantly oh this guy's got a 20 000 profile picture like and it's verified basically and and inherently within the platform which is I think a huge advantage to the Reddit has done this so um and regarding gaming broadly absolutely I think this shows that uh you know when people can identify their personal image with a uh something of value something that's rare collectible and limited people like that and it adds more value to the nft then just like yeah I've got this nft that's worth something on the blockchain but there's no way to verify it outside the blockchain and it's a really cool way that reddit's done that and also I I want to jump in and just uh again in regards to that of is it bullish for gaming yes because I think the biggest pushback that we're seeing in gaming right now is yo we don't want nfts yo it's ruining the the gaming system like all of that right it's just a lot of backlash and like what kind of mentioned with Reddit a lot of those guys on Reddit were that crowd that were talking ill about nfts so what this does is I don't think this is like the Turning Point like personally I don't think this is the turning point but what I do think is it shows that with proper branding we are actually able to convert these haters into supporters of the technology so for me it's a massive proof of of concept here whether it's the turning point or not I can't I can't make that claim but I think it is a it's a very very bullish signal at least for the long term um that we're not fighting a losing battle even though that they're against it now they are willing to come on board when the time is right and when marketing is done correctly that makes sense let me ask you this then so you know here at eluvium we got to learn from generation one crypto games we saw that inflationary tokenomics bad terrible gameplay that people hate and they're just there for the money bad um characters that are kind of forgettable or they kind of glossed over them or rushed something to Market bad eluvium's addressing and correcting all of that okay Reddit in my opinion has done the biggest web to adoption ever up to this point with bringing three million users in out of their 50 million I mean it's not hard to imagine that going up to 5 million right getting 10 of the user base of a major social media platform to adopt this new blockchain technology is the biggest feat ever in terms of blockchain and getting mainstream in here so the question I have to ask and I'm gonna kick this over to you tsg what can alluvium learn from this Mass adoption that these guys pulled off taking a community that literally hated a technology to now loving it and spending gazillions of dollars on it what happened yeah Dan that's that's a tough question what can we learn from that I think branding is definitely one of the things like the vocabulary that we use and obviously I think uh with us being internal we kind of already see us kind of making that change and we're moving away from the play to end I don't think we will ever really truly branded this play to end but moving away from that again focusing on on the game itself and actually just before this I was on a on another live with James Helton um and we had a similar conversation of I think from the biggest thing that I think that we can learn from this is from V1 to V2 or where we are now is like and you've mentioned this many times as well is stop talking about crypto stop talking about like the the technology behind it focus on the product itself and I think that is actually we can say are the vocabulary or or the marketing but I think what they've done is they've actually really focused on the product that they're building and how it's going to add value to the members in that community and by focusing on that product alone it opens people up into being receptive essentially instead of saying oh yo this is you can flip this for this much you can again let's not talk about that let's talk about what the product is it's coming from the community what they've done there I think that's that's the way that that's the biggest thing that I I think that we can learn again it's a very simple thing to say oh let's not use nfts let's use collectible avatars or whatever the word is going to be um like the vocabulary it's very easy for me to say oh let's change the vocabulary but I think it's deeper than that and I think it's it's going back to the actual product itself and make sure that the product serves a solid purpose to that Community that's the thing that I think is actually going to make like people in communities actually transition their their mindset into being more receptive of these things right yeah I think there for me there's a couple things that are validating here for a project like a louvatars if you guys are not already familiar with that uh eluvium had been planning for a long time and is going to roll out very soon collectible avatars that are customizable and you can remove pieces of them and then add them to a collection and then freely custody them on the blockchain literally the exact Avatar kind of format that Reddit is executing eluvium's been planning that for a while and is going to bring that to the table as our Avatar as our profile picture nft offering so I think the point there is oh I think all the pfp projects and what have you that are just some crappy looking animal that looks like garbage on purpose that doesn't do all of these things that doesn't isn't fully customizable isn't easy for folks to onboard into and um isn't necessarily as high quality and doesn't have a collection sort of feature I think what Reddit has done here has shown the bar that a louvitars is bringing that's Nelda bar like Reddit put the bar there on all of those features in web 2 eluvium is going to put the bar there in web3 so if anyone buddy else is going to come in here and try to shill some nfts you've got to do all of that to meet par now not just generate some shitty looking goblins that are like smoking a pipe and then like hope you make millions of dollars I think this raised the bar from like a quality level of like a 1.5 out of 10 which is where it's been to like a six out of 10 like that like the quality bar just went for Avatar and profile pictures and anyone that tries to pull off in the next year or two the 1.5 out of 10 strategy is going to be less and less successful every single time they attempt to do it quick takes on that then we need to move into our next topic do you guys agree that the bar has been raised here or is nobody paying attention to this red dit and this is a nothing Burger story it yeah go ahead go in bed uh I was gonna say it's definitely not a nothing Burger story um but I also don't want it like I agree with you it's definitely raised the bar and it's funny you mentioned the Goblins as well because I was actually going to make a joke about yo so a duck smoking a cigarette isn't isn't going to cut it anymore um but but yeah I don't know so the bar definitely has been raised um and it's definitely not a nothing Burger but also and the fat and definitely not looking over the fact that they did onboard three million wallets that that is massive there's no running away from that but also I don't want to fall into the Trap of of these small like small hype cycles of we are in this industry we are in this like these conversations like we kind of saw with um I'm looking at it now and you you brought up the Goblins like goblins happened in in June of 2022 much after like when everything crashed and everyone was going crazy I think at its peak it was like I brought it up here let me see the peak was like nine nine either some coming at its peak and it's now down to like less than one eighth so and that was like so and everyone was like yo this is the change this is narrative driven nfts now like this is the standard now we had that that was a conversation that was happening in in crypto Twitter nft Twitter and again look at it now so but again I do agree that this yeah and there is a difference that's crypto Twitter though and that's crypto Bros Reddit yeah has their avatars being used by regular web 2 redditors yeah like regular people not people that are going in on a goblin or a piece of poop to make money off of it because that's the only reason why anybody bought any of those goblins zero percent of people liked those right they only bought them low so they could sell them High the value to each one of those people was literally zero on all of those whereas with red to get three million people to get these avatars and to buy them it's because they actually want them right

is that three million people didn't buy they actually uh minted for free so you get when you when you create a Reddit Vault you can and you're so active you can get one for free you don't have to pay anything for that initial bit but the Gen 2 avatars were all paid either between ten dollars and a hundred dollars um now the those uh free ones that they gave out those are actually going for about 20 to 30 40 right now on open C even the free ones but the um but yeah so and regarding your question earlier has the bar been raised forever really quick thank you for clarifying that I do want to say though if you go on Twitter right now there's a million Bots out there asking everyone on Twitter and everywhere really to please have this free nft free mint please take it for free says thousands of bots like we're just giving it away for free and people aren't doing it Reddit successfully got millions of people to take the nft for free the point is they actually wanted the product right they still made an nft product people actually were willing to take for free right most 99.9 of the nonsense out there can't even get you to take it for free it's not even worth the two minutes required to take it for free whereas Reddit it was definitely worth that for a lot of users I think that's a bar the cross right there it's nfts or at least that's absolutely true worth zero now as opposed to negative it's in the negatives yeah it's made they made it worthwhile they integrated it I agree so uh uh David you had something you wanted to say I uh I'll pass it back yeah what just to mention about goblins even even so I think it was a perfect timing on that time of the market that they came up with something creative even if serial value whatever but the narrative Etc and the timing was so great that was a successful event for a short time of period I mean uh that's the only thing I will talk about this and the other thing interesting here is that in terms of nft Gaming and then we got this the collective nfts as well in terms of number of sales there is more in gaming than in Collectibles but in terms of volume

uh the nft Collectibles are 10 times bigger than gaming so if you can mix both you gotta I mean you have a a business here a big opportunity Collectibles and gaming both in mix for me it's something that that can make a difference yeah I agree and I wish that I wish we had something like that uh at alluvium uh and really quick we have a sponsor that wants to play a video right now we'll be right back foreign

had thought of this before go to eluvium.io luvitars and wow look at that you could make a louvitar you could make your avatar you could customize it headwear eyewear skin props bodywear huh you should go sign up right now it seems like it might be a good idea check it out on the website okay thank you to our sponsor eluvium for that so let's get back into the discussion we mentioned earlier that nft has very deliberately avoided all blockchain and crypto and all of this sort of language that the average user out there thinks is uh either criminal or destroying the Earth or insert fud here that the establishment doesn't want so the question to you tsg the next topic here is is the term nft dead now like based on reddit's mass Market success with collectible avatars should the crypto industry move away from the term nfts tsg you're up first yeah again we've had this conversation um before and many times in this space uh I don't think so again I don't think so again but also at the same time I think that we should start and this is a perfect example of us using um actual specific categories in nfts and I've kind of mentioned it before a lot like in in one of our previous episodes of yeah we have the category of dogs and then we have an Alsatian or whatever it is same thing with with cars you can say oh it's a car then you have to test or it's afford um so I think the the nay or like the main category the top category of NFC should still be there but then again we should we shouldn't just class everything as an nft when we're talking about in-game assets when we're talking about digital Collectibles when we're talking about customizable avatars I I I'm starting to lean towards the thought that we shouldn't be using nfts for everything like everything isn't nft yes but when discussing specific things let's give these things specific names so that way we kind of understand that all right so this has this role this is used here um and again maybe it's the same like we don't just say oh video games because some people I like a fast passing shooter some people might like strategy games the same way with these nfts like maybe you're not interested in the collectible side of things but you are very interested in expressing yourself through customizable advertise or things like that so that's kind of where I'm looking at it now and I actually am changing my mind as I'm saying this like I do believe that nfts as a whole thing yes it it it it covers everything but when we discuss these and when it comes to marketing it might make more sense to actually start to specify exactly what type of nft that is and give it its own unique name and ecosystem I think that might be a lot more it might be a lot easier for different communities to receive it imagine you got it so my take on that is that you know it's very important for us to view nft more as just like a background term because that's really what it is like it's a type of asset on the blockchain and we don't really need to call an alluvium nft just call it an alluvial you know we just call it an aluvitar we don't we call it a Reddit collectible Avatar you know we don't need it technically is an nft in the same way I don't need to when I'm working on some database I don't need to talk about the database table number or like the talk about the technical aspects of managing a database I can just be like yeah this is the data this is the entity or this is the entry or whatever you just talk about the thing that is and it just that happens and if nft is just how it happens to exist on the blockchain and that's okay we don't need to focus on that though you know because I think NFC does have a lot of negative connotations um in a lot of people's mind that makes them you know kind of push back a little bit naturally automatically because they think they're trying to sell you something when they initially hear that and I think we got to be careful about that just focus on the fun aspects of it uh and just the natural properties of it of an NFC yeah for me this reminds me and I guess I'm dating myself a little bit but in the early 2000s late 90s early 2000s MP3s were the big thing that was the big revolutionary technology for music and like even Eminem was rapping about like I'll get you on audio and MP3 and then you had your iPod and it said it had the MP3 logo on it you bought a boom box that's what people used at that time it had the MP3 logo on it people were selling MP3s not not songs right there your device was an MP3 player not a music player right and so for a long time that technology was so revolutionary and it caught everybody's attention that everybody referred to mp3s but after about three to four years people stopped talking about MP3s MP3s just ended up like you're saying being the background technology and now we just say hey did you listen to Taylor Smith's Taylor Smith Taylor Swift's new album did you listen to that podcast did you uh can you play this song like we're not saying can you play that MP3 did you buy Taylor's new Mp3 Etc so I think that that to your point to reinforce your point I think that's precisely what's going to happen with nfts everybody was crazy about MP3s for three to four years then nobody talked about it ever again I think everybody's crazy about nfts and then nobody's ever going to talk about it ever again and they're just going to talk about what the actual thing is on the front end the creative is on the front end instead of the term MP3 So to that point I think the debate between should we call them nfts or should we call them digital Collectibles is dumb I don't think that they should be it's not digital Collectibles is not a replacement for nfts to your point uh Gizmo slip the I think that we're going to call it alluvials I think we're going to call it you know Assassin's Creed we're going to call it whatever the gun name is in the game we're going to call it whatever the work of art is actually called not a collectible and that's that right so any other thoughts on is the term nft dead do you disagree with us do any other hot takes here I kind of disagree for the moment because I think we still early on this technology to get it mainstream really I mean because there are still uh pictures or digital art that are not nfts and I think that will come in the next wave when everybody knows you know understands really what an nft is that they will never talk about nfts again because everybody will use it and this will come when a big Studio or something or maybe I don't know maybe steam Stars also using these avatars for their user base you know steam their big gaming platform is web 2 but and then um you know a lot of audience will be more used to the term of nft and then they will stop using it but for the moment I think it's still early we're really early on on on this Market I think yeah I don't I don't see Steam ever integrating nfcs based on what Gabe Newell's said he's not very pro-crypto um and blockchain technology is my understanding but no it's true it's true they can change mine in you know yeah forever as soon as the business starts to lose Revenue then they're gonna go oh well we started partnering with one two three four and five but at that point their business already started declining it's because the new steam came up and started taking their business it's because IMX Marketplace maybe becomes the new Steam and ends that once it's once they take about 10 of their market share it's too late the new platform is now too far and steam can't catch up and then at that point steam will try to catch up and then it'll become the dinosaur it'll it'll become the TV to YouTube people will still people still watch TV but YouTube is the biggest video platform of all time Etc yeah so I think if you're late to the party and if you're not if you're not going right now on crypto and nfts and blockchain in this technology you're too late yeah you're already too late at the same time I would play The Devil's Advocate in the sense that you know steam has all of these relationships already preset up with all these game Publishers and it's going to be difficult for you know like IMX to break into that market and say take game sales I think that game asset sales will definitely like in-game assets will definitely sell for more free to play oriented type of games um and I think eventually we will have whole games sold on the blockchain I would love that I can't wait to be able to like buy a game like cyberpunk 2077 on the blockchain to be able to sell it to someone else when you're done playing it or uh maybe there's limited supply of certain there's only a million copies ever sold I don't know well but there's all of these technologies that will eventually go into that it's just that steam has that first mover advantage of they already have the relationship set up they basically have a a pseudo Monopoly on it on the game uh video game industry in that sense and we have epic game store we have uh ubisoft's game store but nowhere nearly to the same scale that steam has for a user base um so I think that if anything if if we get a competitor like IMX to come up right and and start selling games and and taking over a huge part of steam's marketplace I think that'd be great and I think steam could still compete though with IMX even if they lost 10 market share to IMX simply because of those pre-existing relationships with the game studios but they're it's too hard to predict what's going to happen in that in that ballpark that's just I want to I want to push back on that slightly if I could um and again push back more than slightly spice you're full of [ __ ] and here's why I don't know out of Jesus and okay I don't verifying I don't think you're full of [ __ ] but um like an example that I had an example that that I'd kind of give in regards to that is like yes they have all of these connections they have all these relationships but something that we're seeing play out in front of our eyes right now is and I've mentioned this a lot Tesla like you saw those like traditional automakers being like yo we don't need uh electric cars it doesn't need to happen all of this brushing it up brushing it up they were pseudo monopolies right they they were buddy buddy with all the other guys they were like we don't need to do this Tesla came up slowly step by step started building the infrastructure started building these uh charging stations putting it around everywhere and now they're the leading electric car maker uh EV maker sorry I think they're like overall actually I think yeah and so you had these now you have these traditional makers that are now again like what we're saying they're too late to it and they're like oh we need to go EV now but really can make catch up can they actually put out the like electric charging stations in all of these places I like they can but it's it looks like they're going to be taking like that Google approach of instead of being the taking the large majority market share they're happy to kind of sit down wait till someone else does it and then take a minority [ __ ] another minority show but but it's a smaller share at least um so yet like with steam yeah they've got all these connections and stuff but I mean if all of their connections are moving slowly is that really like I I don't think it's gonna be I think and I'm not saying that out of the game I'm not saying that out of the game I'm not I'm not that stupid but um it's not as clear-cut I think the biggest challenge will be the actual sale of full games you know like you were talking about like buying the next Call of Duty campaign on the blockchain and being able to resell it to someone else um you know because there's also a lot of motivation and factors for game studios because you know historically like they like the idea of selling me the game and then I can't sell it to anyone else because the single player game and then it's like locked up it's like the copy is burned basically but you know within the blockchain maybe the game Studio could take a 10 or 20 cut each time the game is resold so it's a continuous Revenue stream um but they'd have to like basically in-game Studio or game video game studios have to decide is that a trade-off they're willing to make and are they going to make more money doing that versus just selling the game one off to each individual you know so uh I think it's gonna be very interesting I've got a lot to say on this so so really quick people of the future watching this right now there's someone here that there's someone in this conversation in 2022 that thinks people will buy video games isn't that hilarious because in the future when you're watching this people are not going to buy video games so if you look at the trend right now free to play games has been yeah steadily skyrocketing into Infinity taking over all revenue for all video games and that trend is not slowing down and I think with the Advent of web 3 and nfts and blockchain people paying for video games will become a sub 10 sub 1 Revenue stream for gaming in the future similar to how people don't buy music albums anymore like you don't go buy an album you just play the music for free anywhere you want now you can pay for premium features you can play for extra access you can pay for all these Collectibles you can buy the T-shirt you can buy the mug you can go to the concert you can do all those things but nobody buys creative assets like that anymore now that the technology matured whatever the least friction is to get access to something fun and creative and entertainment that's what wins longer term so gaming company assuming that game that gaming companies will sell their video games to people in the future I think is totally naive and you're not looking at like where the trend is going the trend is going if you give it away for free you take over the market if you charge people money to to get it up front you lose look at baseball the sport that's going in down to nothing you have to pay money to watch baseball so baseball dies right so everything that you have to pay money to enjoy is less popular and is trending down there will always be companies that sell you something and you have to pay money to gain access to it but those always go down just like with TV you have to pay for a cable package to get access to that content TV go down print media you have to pay you have to pay access to get access to that print the piece of paper that goes down what went up YouTube it's free social media it's free streaming platforms they're free free is the future zero friction is the future and so gaming developers and Publishers out there that think you're gonna sell your video games and be successful 10 years from now if you're watching this in 2032 it's ridiculous it's a hilarious idea same thing as like us going back 20 years and being like in the future you won't be able to sell a CD anymore they'll be like yeah right

yeah there's one thing that I just want to add real quick as well just a small thing about you uh about you kind of mentioning oh yo like they they'll start to think oh maybe again let's say that they do still sell video games in the future that idea of uh maybe we could make more money like that's a decision they have to make now with like in-game cosmetics and in-game purchases now and they're clearly against it because right no no that's not true that's not true you ever heard of micro transactions that's the majority of Revenue in the gaming industry it's 65 plus percent but this is not on the blockchain no yeah no but that's what I mean like let's say I buy a skin technically if they allowed us to be transacting on a secondary market and then collecting royalty that's better than us just paying one time and that's it that's done for that one skin so they have to make that decision now already that's a decision they should be making and again I haven't done the math and I'm not on my like an expert at that but I think logically speaking having like having your your customers sell and trade and open Marketplace and receiving that royalty for Infinity should technically make more sense you might have a bit less on the like front end but on the back end you should be generating much more so that's a decision that they should be making now and they have to be making but they're clearly all against the whole blockchain and free Marketplace so yeah I just don't see them again being proactive with it I think they'll adjust when they're forced to adjust so David anything you want to add here we got to move on to the next topic yeah well just quick thing I agree I mean the interesting thing here is how you offer something free with a lot of value for the most you can and then how you monetize that so yeah I agree that's the business model of almost you know any successful uh company suffering you know especially in gaming but in in in you know in everything that you say all media so yeah it's uh I I in that case I agree cool that makes sense so really quick if you guys enjoy these conversations and obviously you like looking at all of our very handsome above average attractiveness looking faces right now but if you want to listen to our above average attractive voices we have ape audio podcast version of this go to eluvium.buzzsprout.com we're literally pumping this into every F and platform there is you can literally just search eluvium I'm editing up these episodes uploading them I'm about to dump five more episodes on there caught up all the ums and odds and awkwards are out and only the good stuff is in go watch this show or listen to this show rather on audio podcast platforms okay friends we're gonna move into the last topic I know you guys have your millions of subscribers you need to go attend to here so let me get you on the road here with our last topic social media adoption will every single social media platform now copy paste reddit's collectible avatars model because it was so freaking successful they actually got people to take on millions of uh free nfts and introduce that technology to their users you know those Reddit executives are like yes three million wallets yes if we can monetize those by an average of ten dollars per wallet yes per month yes that's 30 million dollars per month you know they're doing the math on that right oh 120 million dollars bonus Revenue per year so I guarantee you every CFO of every social media company is having a second look at getting people to adopt this technology so they can monetize them so Gizmo slip what do you think man is every social media platform just gonna control V control C or whatever the other way around this model onto their platform what do you think dude I did it the backwards they pasted them copied uh what do you think dude I think I think that it was a really well executed plan um from a marketing perspective especially um and then the way they like I said they integrated the avatars from a not like the completely changed the way the profiles work typically on social media where you can just upload any image you want um and I think from a foundational level I think that's going to be the key that a lot of the social media platforms and video game um Future video game platforms like the eluvium you know Network or whatever like using a louvitars as a profile picture rather than just any old jpeg will narrow it down and ensure authenticity and add much more value to any Collectibles that are sold on that Marketplace so um I think that overall I think reddit's uh said fantastic example of onboarding millions of users very quickly within a little bit over a year now three million users in a year is incredible um and I think that it shows that there's a vibrant bright future for integrating blockchain technology into web 2 applications especially seamlessly and it's just I'm really impressed overall with reddit's execution and I think it's definitely something that everyone needs to learn from and take at least the key portions of it the authenticity the value that they give back to the user within the platform and if they can do those things they provide like a great game or they provide a great social media platform experience and then they can integrate these Collectibles into them it's just going to be a huge Money Maker for everyone across all these different social media platforms and gaming Industries so tsg okay let's assume the CFOs of all these companies are looking in this and going cool new Revenue stream I guarantee you almost all of them are some of them are Boomerang right now but most of them probably are so tsg of all the social platforms out there that could take this on messaging platforms video platforms audio platforms you name it we'll call them web tube community and social platforms which ones do you think are best suited to take on maybe the Reddit Playbook and just knock it out of the park what are your thoughts uh I would say parlor now that Kanye West is now just uh you're actually onto something there so yeah yeah yeah yeah no I think like honestly speaking I think like something like Apollo or um like Rumble all of these like smaller ones but otherwise uh I think probably one of the biggest ones would be something and when I say Facebook I mean like all of Facebook not just facebook.com so facebook.com Instagram WhatsApp uh like all of those like that kind of umbrella a Discord yeah Discord what do you think I feel like this one what do I think of Discord difficult integrate integrating this type of thing yeah I mean yeah talk more about it I'm actually curious how would you see it play out with Discord yeah so you're the you're the Discord CEO you're pitching this to the board of directors before you do it what's your pitch ready Brandon go take everything right it did and copy it Ctrl V Ctrl C no I mean it makes sense right Reddit has has um generated this art that's loved by these individual communities they give each one Community points for each community and now there's a singular unified Community points system across all communities on Reddit that's on the blockchain and that's now they now control that imagine if Discord had such a I know they're not calling it crypto or token but imagine if Discord had a unifying collection of nfts and a unifying cryptocurrency or whatever we want to call Community points across all Discord servers the monetization opportunities there go well beyond Discord Nitro what do you think David yeah I mean uh again is like offering something for free and then you know royalties we will do the the rest of the work no and not that not only that but also having this collectible uh thing attached to it that you can actually sell it but the way they don't is so cool because you know as you're changing the names of everything using like um a wallet from the company really no because it's in unless you take it out and move to your wallet it's still on on Reddit wallets you know it's called the bolt or whatever but um yeah I mean for for this course is definitely a good uh I I mean it's a good place and of course Twitter I mean both platforms are the most used uh in nft space so it's definitely um a natural step moving on that and again you know free is going to monetize so yeah and I love what you said a minute ago about the royalties being the real play you only need to sell some of the nfts on your platform and then if you get a transaction fee every time they're transacted that's the recurring Revenue that you're collecting as a platform that's the real cash cow right yeah yeah that's like the free gaming model you know it's uh more or less kinda only the ones that are willing to pay for the skin to look different and and on the other hand is so cool because that allows a lot of people in the world to play even if they don't have money to really to you know buy skins Etc they can enjoy a game for free so everybody is happy you know I think that's what you know nft industry is going to move in that direction as well also don't remember mobile mobile is something really good to have in mind for the gaming and Andrew I actually want to throw this to you man because I know you're big on um like like you've got strong opinions on YouTube and stuff like that how would you like to see this do you think YouTube is is a good place to see this like how can you see that being integrated in YouTube yeah so YouTube has always done great by not directly selling anything themselves to customers but letting creators sell things and then they take a cut and so I think that YouTube would be best served um with their uh subscription model that like the channel membership model that they have right now uh selling collections of nfts and potentially avatars essentially that are customizable on a seasonal basis for each YouTuber so each YouTuber can do a quarterly collection that they can sell if you're a channel member during that period of time you get that collection maybe it's one Avatar that's in the likeness or whatever of the creator with the full set of gear and if you are a channel member for all three months months during that quarter and you make that three-month commitment to support the channel you get that collection and you can use it forever you can transfer it off platform like Reddit offers but otherwise you can keep it in the YouTube Vault you can appear as that in chats it gives you custom emojis and all of that is on the blockchain and it is within YouTube's Vault and usable on the platform or you can transfer it off platform if you choose I think that basic subscription model uh would basically blow up certain creators if they're hot right now right where they do a hot Drop right now whether it's a celebrity whether it's a big Creator whether it's a gaming company a business whatever it is think of all the applications that could happen there hell you could be a do-it-yourself plumber who's just doing tutorial videos on YouTube to try to sell business and then if you're a channel member this month and you have the nft you know you'll get 30 off this Plumbing or Home Improvement related item or or you'll get are my service for I'll come out and fix your pipes for free or whatever right so you can add it to the services business you could have celebrity drops you could have gaming companies and Publishers doing drops through this you can also just have creators doing community-based drops and then being able to transfer those nfts off platform would make them viral and some of them would have obviously value off platform whether that be for services and discount or just literally for like investment or nft flipping that would blow up YouTube in terms of popularity and add this sort of financial meta game and collectibles meta game to what's trending on YouTube and that I think would be one of the biggest and highest impact things that they could do for their business and speaking of which I've got to bring up this final topic and get your thoughts and we gotta wrap this episode up uh but the final topic I wanted to bring here is Will third parties like apple taking 30 percent of every transaction on their platform work for this digital collectible space I mean that seems pretty Savage will Facebook taking 50 of everything that's happening on meta work in this digital collectible space or are those Savage Cuts gonna drive creators off of those platforms and Publishers off of those platforms so they can just sell them on their own platforms instead and just maybe jump off the app store all together I mean those are Savage Cuts think about it what if Discord started selling nfts and what have you and they started getting all these royalty Revenue off of those on their platform Reddit as well royalty Revenue off of all of that and that they're saying well hold on why am I giving 30 of that to Apple I could just jump off their platform what are you guys thoughts on that do you think the ability to earn royalties and be able to make your own platform a Marketplace as a Creator to make yourself in your brand a Marketplace gonna push out these centralized players or not open question who's got an opinion on that I think uh epic games right now is a lawsuit against apple right trying to um prevent that 30 tax on all the fortnite and that's why they created their own launcher that was outside of the app for the iPhone and I think if you look at the Reddit Avatar collectible avatars they actually included the 30 tax if someone bought the Avatar through the shop but after that they they have to leave the uh red app in order to sell it on the blockchain so you have to transfer it uh access that wallet through openc or some other Marketplace to actually sell it so the initial sale may be viol used within the Apple store if you want to reach more users but then I think those users will be motivated to jump off of the iPhone if they actually don't want to lose 30 of the value of their nfts or whatever they ended up buying whatever collectible they bought so you know that's interesting so basically in this and and maybe this number was wrong I heard a number of sources say the value of all the Reddit nfts ended up adding up to like a hundred million dollars so wow so Apple only got 30 on the initial sales on the platform because they only allow it to be sold not on the blockchain and they have all these stupid nft rules well if they had led all the sales of these avatars actually happen in the app store they would have gotten a 30 cut on the 100 million dollars worth of transactions versus these small ball transactions these were like 20 bucks 30 bucks 40 bucks here Apple only got a cut on the little teeny transactions they missed out on most of the revenue 90 plus of the revenue because of their dumb nft and crypto rules so do you feel like these web 2 companies these app stores these different platforms are just shooting themselves in the foot by forcing users off the platform are they missing out I mean in this case they missed out on 30 million dollars in Revenue because of their dumb rules I mean maybe that's nothing to them they're a multi-trillion dollar company but what happens when it's not three million users is 10 million 30 million 100 million a billion now they're missing out on trillions of dollars in Revenue final question open floor then we gotta wrap the episode up what do you guys think um I think that all these big companies has something really important that is for me the network effect so they have a really that huge Network that is difficult for the users to move to different one so far unless you know blockchain evolves to a platform I mean to a system where isn't you know truly decentralized and then the proof that is working well for business to build on top then we'll change the things but even so um you know this network effect is what makes this competency still uh going on for at least for uh for some time and um and yeah I mean it's that's uh that's the the the the big thing but yeah they missed on the other hand they're missing really good opportunities um because they are so slow in terms of making decisions no that's what what uh you know is this those these two things I would add that uh you know when you think about the reason why there's a hundred million dollars worth of volume and nft trading for the the Reddit avatars is partially because of the low Trends uh transactional tax if you had to pay 30 tax to Apple it'd be almost impossible or not impossible it'd be much more difficult to buy an avatar to flip it for a profit if you're going to lose 30 plus percent because I think it's like a three or five percent tax back to the original creator of the the Avatar so um so if Apple did do a tax on this I think they would have to do something like two percent something more like what IMX does for using a apple official Marketplace even a five to ten percent like with them being like the big guns like a five to ten is like I man it sucks but I mean fair play right we can't really run away from that so going back to the whole like shooting them like shooting themselves in the foot I agree and we see that not in just like in in this but in in like again censorship and everything like that you're seeing like again the rise of Rumble the rise of not I mean I want to say rise of parlor but I mean like you see these other options and like you say like is it going to be is it going to be detrimental to them right now in regards to these these like 30 50 maybe not right now because no one has a choice but as we do start to get these choices absolutely why are people going to stay here um and again like I say we're saying that with censorship now we're seeing people move away from these so and again maybe you're right maybe the trillion dollar company so it doesn't mean anything to them if a couple of people leave but oh yeah what we're saying yeah exactly over time that's that's the compound and then they're going to be forced to make that decision which is what we've been saying so again it looks yeah we'll see how it plays out we'll see how it plays out they don't change like I said I think a five to ten percent it's still a lot it's a lot yeah I mean it's a lot more digestible than 30 to 50 that's just insanity right I absolutely agree they're shooting themselves in the foot in the long term if they don't adapt they've got to adapt or users won't stay on the iPhone they'll they'll probably buy it initially and then they'll transition to other marketplaces and they're going to lose that Brandon with gizmos lip where can people find you on social media youtube.com gizmoslip that's probably the that's my main Channel about the channel I also do tech reviews on Gizmo slip Tech which is my second uh channel so thank you so much thanks so much for having me subscribe right now it's in the description and in the podcast notes as well go subscribe turn that 600 million views into 700 million David AKA pachetto where can people can find you in many places but for nft related content it's in Spanish it's a patero nft but I'm also creating family friendly content with millions of users in our channels but this is just if you if you got kids and you want to learn Spanish then go to Team Nico for example or I mean you will find out their other channels as well this guy has like so many channels over a million subscribers let's take it from Millions to billions tsg repeat where can people find you uh yeah so CSG alluvium on YouTube and I would love to to join these guys with the millions of subscribers so so help me get there guys we have a bit to go

you'll get there eventually you'll get there yeah yeah you just have to grind and make thousands of videos and improve every single video it's super easy it's that easy my friends thank you all so much for watching illuva talks every single week you can catch this show and expert guests like these guys discussing trending topics I get I told you you would get your money back if you didn't learn at least two new things today you learned two new things didn't you so don't ask for any refunds we'll see in the next episode and enjoy some of this original eluvium soundtrack music have you ever heard it before probably not check it out see in the next one

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