Synchrony's Vision for NFTs
Our Wednesday's NFT Partnership
Regardless of your exposure prior to reading this article, you have probably already heard the acronym NFT, which stands for Non-Fungible Token. The top 10 most expensive NFTs this last year averaged at $24 million USD per sale, and the NFT marketplace Opensea was recently valued at $1.5 billion. You might have also seen some of the criticisms of “selling JPEGs” from icons like Keanu Reeves, or through a recent South Park episode. You might have also banned the discussion of the topic at the dinner table. In any event, the goal of this article is not to convince you of the value of NFTs in their popular form, but rather, we want you to suspend disbelief in the 90 million dollar jpeg for a moment and consider some alternative use-cases we believe solve problems and contribute value.
So, What is an NFT?
What NFT’s represent on a basic level, is digital property rights & verifiable digital scarcity.
The iteration of NFTs that we see currently are mostly in the digital/visual art space as represented by the criticisms by Matt Stone, Trey Parker, and Keanu Reeves in the videos linked above. While we do believe that some of the purchases might have been a bit extreme, the true value of something is, at the end of the day, what someone will pay for it.
These digital scarcity value mechanisms are driven by similarly paralleled versions in the traditional space. For example the lifestyle fashion brand Supreme routinely sells limited edition merchandise for multiple times the value of the raw materials. When viewed through a more traditional lens, the idea of NFTs are as old as first edition books or artisan crafted goods.
The following is a limited list of possible use cases we see for NFTs.
1. Verification purposes
NFTs represent an opportunity for real world verification purposes like identity and authenticity.
We are already seeing this in some new blockchain games currently being released, yielding massive returns, using NFTs as in game assets. And if considered in the realm of MMORPGs (massive multiplayer online role-playing games), the idea of digital items having real world value is nothing new; with examples like the CSGO, where a knife skin (purely cosmetic) sold for ~$23k USD. Now, players that grind for that unique item can verify that the item is unique and sell it on secondary marketplaces outside of the game. This concept of overlaying the digital on to the physical world is part of the “metaverse” that is also making waves we will cover in a different segment.
3. The Art Industry
While the sale of digital art is fantastic, being able to have provenance established on-chain for traditional physical art may prove equally as valuable.
4. Supply Chain
Part of the Synchrony team was assembled through hackathons. One of the first hackathons we were involved in, ended up being a solution that turned the bill of landing on oil transport trucks into an NFT. This allowed for an on-chain representation of the oil being transported. This representation could then be collateralized and utilized through DeFi mechanisms to allow that value to be better utilized. E.g. leveraging a lending protocol with a 60% collateralization.
Audio and visual art can both be turned into an NFT. One possible value to minting music as NFTs is in a B2B model where the artist who mints the NFT, as a one-of-a-kind track, then sells that track to a DJ. This DJ can now derive value in his/her show from an experience only available at their shows.
Synchrony, the utility-NFT, & Wednesday’s
Outside of that first hackathon, Synchrony started out testing the innovative NFT landscape through Solrazr’s IDO platform where we were the first (in history) to mint IDO allocations as an NFT, dubbed the SCY IDO NFTs. This created a unique secondary market that crosses DeFi and NFTs. Synchrony’s experience with NFTs has recently been leveraged for their collaborative Wednesday’s NFT project with a group of international artists.
The Wednesday’s NFT is a collection of 5,000 algorithmically generated frog NFTs designed specifically as a utility-NFT in the developing Synchrony ecosystem. The Wednesday’s NFT’s were the brainchild of early Synchrony community members and the Synchrony team, as we all love frogs, NFTs, & utilitarianism.
The utility NFT will serve several purposes all of them centered on providing Synchrony’s core community members the best possible DeFi experience. The NFT will grant owners special access into private social channels and early minting rights to further NFT events. Wednesday’s will also allow leaderboard members to have higher visibility as well as significant cosmetic customizability, physical swag, and VIP access to live events. The Synchrony team will continue to explore other utilities of the NFT as they help Wednesday’s elevate the Synchrony community.
Synchrony is the first truly decentralized asset management platform powered by A.I. & Analytics. Synchrony offers composable indexing, a holistic suite of analytics tooling, & the first-of-its-kind on-chain copy-trading protocol, powered by Solana.
We seek to provide the retail investor and crypto native alike curated tooling to manage their investments from one platform with the ability to execute complicated strategies with a single click of the mouse; a place to buy, sell, trade, DYOR, & even socialize.
About Wednesday’s NFT
The Wednesday’s NFT’s are 5,000 unique collectible NFTs drawing inspiration from all over the world, with contributions from multiple artists, and conceived in partnership with Synchrony Labs. Fellow frog friends who hold on to Wednesday’s NFTs will be granted access to special community perks, private chats, and unique benefits in the soon-to-be released Synchrony dApp. All royalties are shared with participating artists.
Stay locked into our socials as we have will be rolling out some exciting things in store for our community and the wider DeFi ecosystem over the next few weeks!
The Wednesday’s NFT
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