“The summer of 2020 became known as ‘DeFi Summer’, by the explosion of criptomonedas and decentralized finance (DIFS). And 2021 will be known as the ‘Summer NFT’ because of the rise of non-expendable tokens “. He says Clara Bullrich , co-founder and CEO of The Venture City , your own venture capital firm. In an exclusive interview, the investor expert assured that the future mass adoption of NFT assets in Latin America will come from the world of gaming and the virtual fields of the metaverse .
The Argentine investor founded The risk city in February 2017, along with her partner Laura González-Estéfani , originally from Spain. With overwhelming enthusiasm for the endless business opportunities in blockchain , Clara shared the possibilities that non-fungible tokens (NFT) offer for Latin America.
“At the end of the day, what we do as venture capital is to understand the trends and predict where the next disruption will come. We do not invest for the present but for the future. We are not thinking about what works today, our challenge is to discover what will work tomorrow or in 5, 10, 20 years. “ Bullrich said.
The future of the business NFT in blockchain.
The expert explained that the Internet we know today “operates from these gigantic platforms that were created within BigTech Companies “ And current monetization schemes are not fair. Today, most of the profits go to businesses, not creators or users the power of these content platforms.
“When everything to do with blockchain starts to appear, it is a disruption in itself,” he said. he said, convinced. “So all this technology is telling you that the world has changed appears. The era of aggregators getting all that no longer exists. If we are now in the era of subscriptions, we are about to enter the property, the creator owns the content and choose how to monetize it. That creation itself is explosive, is a new world. “
Clara explained that possessing a risk capital fund has more than ready to make dangerous bets. And, at this time, few investments are as risky as everything related to blockchain, mainly cryptocurrency and active NFT.
“When we see this in The Venture City, our first reaction is to jump into the water. We’re assuming a lot of risk because today there is no regulation for these companies because there is none in the entire market criptomonedas “. the CEO explained excitedly. “We started by exploring the DeFi ecosystem first, and when NFTs come in we realize it’s going to be explosive.”
Why are NFTs so valuable?
“It really is simple. NFT stands for ‘non-fungible token’ . This is a piece of information that lives in the blockchain, which decentralized network that manages any enterprise. This file is unique, there is no other identical. It is programmable, it is permanent, it cannot be erased, it always stays on the blockchain “ explained the investor.
As he explains, the most important characteristic that a NFT has is property , that is to say, that the creator can own his creations . Non-fungible tokens already they are consolidated in different fields: digital art , collectibles Y gaming . However, the co-founder of The Venture City is convinced that the latter is the door to the mass adoption of these digital assets.
Bullrich dismisses digital art as a way for NFTs to gain greater acceptance. “The Art NFT are very ambitious, not everyone can afford them. In addition, many projects are being created, some are growing tremendously. But in fact, 80% of these projects have no substantial value and is not known if they will, “he said. warns.
Another barrier is that “97% of those NFTs in art, today, operate on Ethereum platforms. So when you buy those NFTs, you have to transact in cryptocurrencies. “ This is in addition to the fact that there is only one predominant platform for perform NFT transactions : OpenSea.io , who drives around “95% of what happens in digital art” and is based on the Ethereum blockchain.
Blockchain, an ecosystem under construction with ‘good bubbles’.
“The problem with NFTs is that the infrastructure is not done, it is beginning to be assembled. We are really so early, that everything is being created before our eyes. So it is normal that there are few platforms like OpenSea, but I am sure that they are working on a bookmarks platform for Latin America. This is going much faster than the traditional technological world “ , assured the businesswoman.
Since it is a world in construction, bubbles observed in products related blockchain as criptomonedas and NFT , they are to be expected. In his opinion, they are even a good sign.
“As an investor, I can say that bubbles are essential for a growing market. That ups and downs volatility means more people are entering and playing in the ecosystem. And that’s the most important sign of adoption. “ explained the expert.
We went from there was nothing to having a market of trillions of dollars, the normal thing is that there is volatility and that there are bubbles. Who enters the world of criptomonedas comes knowing you can have a correction or loss of 50%, even more. We are, too soon, but the return on investment is exponential.
– Clara Bullrich (@bullrich_clara) November 12, 2021
What ONF will last and where?
Clara highlights that the first NFTs projects, which represent a disruption in this first stage of creation, will have Historical importance .
“We are facing something so important in the history of humanity that those first projects are going to have absolute importance. A time when access, monetization, everything is going to change! This is here to stay, those assets are never going to be worth zero. They could depreciate temporarily, but they are milestones of a creation , “he saying.
The investor notes that “Now is the time to be careful” when investing, because “Only innovative, creative, spectacular, disruptive projects are going to have that place in history, others are going to die.”
I’m sure 80% of my NFT portfolio is going to explode, and that’s fine. I’m excited to think of how early we are and the opportunity that exists. I don’t know if 90% of the projects that exist today will exist tomorrow. I think that new projects in NFT must have a competitive advantage, with something that really makes them different. They must present a compelling value proposition.
The risk city focuses on funding tech startups, and they’re particularly interested in those already looking to break into the realms of the blockchain.
“Basically we have a mindset of being there at the start everything from the beginning. That involves taking a lot of risk, and they are willing. We can have a lot of losses, but we assume that by arriving early and understand the ecosystem we are able to capture greater opportunities “ added the enthusiastic investor.
Games, the key to mass adoption of NFT.
“I think the mass adoption is coming from the gaming side,” says Clara. As an example, he spoke of Axie Infinity video game, the first under the concept ‘play to win’, as well as the game company ‘play to win’, ASB , Meaning Give up blame games . It is described as “a #PlayToEarn guild that brings players together to win through NFT games. We are the colonists of the Metaverse ”, according to his Twitter profile .
The concept of “play to win” becomes a help for so many people who were left without work due to the Covid crisis. This offers the opportunity to have a salary, to earn money through gambling.
The expert says that Axie Infinity it had a massive adoption in Asia, particularly in the Philippines. This game of creeds in Vietnam offers monetary rewards to players but, more than that, it is the basis of an entire microeconomic system. “Incredibly, this massive adoption also appears in Venezuela, because it is a country that has very similar circumstances to those of the Philippines and is creating a microeconomics in these countries.”
Super fan of @AxieInfinite Not just the set of the high mark for those to follow, but what they have achieved in such a short time versus what is developed is outrageous. https://t.co/GRqcfQyX0C
– Clara Bullrich (@bullrich_clara) December 8, 2021
A game where everyone wins.
The Argentine businessman says that everyone can access Axie Infinity from your phone. However, to play you need to buy three “bugs that have a pokemon face, they are very cute, my 8-year-old children play it.” At the time the game was created, he relates, “Buying three of those NFT games it would cost you $ 5 . Today, buying the same three NFTs to play costs $ 1,500 . “
So what do those with an eye for business is to buy the NFT of the three “bugs” and rent. In turn, players who do not have the resources to purchase the package tokens can rent them for a fraction of the price. By playing, users accumulate Profits , which are distributed among all: 70% for the player, 20% for the ‘guide’ or Community Manager who “it will educate those people to play and earn money” , and only 10% is used to rent the NFTs.
“It is a company that in a year went from nothing, to have a valuation of millions. All this under the premise of giving access to people, to everyone “ declared Clara.
If the game is the window, the metaverse is the door to the massification of the NFTs.
In addition to video games, Bullrich is sure that the metaverse will be essential for NFTs to be a common reality.
“We all understand the concept of what metaverse is and everything that is created there. There is the possibility of buying land in the metaverse, of games, of creating different virtual worlds. I think the future points to corporations, galleries, museums, shops and others, having a space in the metaverse. We are in that virtual space where there will be another type of interaction and I know that the NFTs in the virtual landing are going to have enormous value “ , she predicted excitedly.
In his opinion, the metaverse will not be as they paint it in movies like ‘Ready Player 1’, but something much more “tangible and natural” . He projects that since most of us spend a good amount of hours in the digital world, the interaction will need to be more fluid, in 3D, for example.
“The creation of this universe implies interacting, buying, searching, being part of another universe. We’ll see tons of iterations until we get to that place, but remember that our work today is to find out what will work tomorrow. Virtual Earth is one of those “ , he assures.
Finally, Clara Bullrich He also said that content producers have great prospects with ONFs within the metaverse.
“All those people who write and create content and do not have the possibility to monetize it. Musicians, writers, tweets, meme creators, and more. This technology comes to create that opportunity. All this content creation is very important, I think it will have a promising future in these new schemes “ , He concluded.