William Quigley (WAX) on why Non Fungible Tokens (NFTs) are finally a thing – part III

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William is not a card collector. He was ten years too old for the Garbage Pail Kids GPK cards although his younger brother recently reminded him that he had indeed been a collector and still has his cards.

Collectibles now really interest William. For an NFT to work it needs a community interested in trading, buying or selling the items and the items need to be collectables.

This is a huge turning point for the NFTs. William gives the example of CryptoKitties. They were huge, they shut down the Ethereum blockchain and they were cited as the dawn of digital NFTs. However, despite there being hundreds of thousands of CryptoKitties there was no secondary market which killed them dead.

“We had about 120,000 CryptoKitties NFTs on OPSkins at one stage with a daily turnover of around one dollar. They just weren’t moving. Guys set up platforms to resell the Kitties and they were dead in the water.”

NFTs and blockchain are made for each other with the ability to provide verification of authenticity but if the NFTs lack desirability there is no future. In addition, using the Ethereum blockchain meant transfer of the Kitties was painful and expensive.  This goes back to convenience for customers.

William is very proud of the WAX Cloud Wallet.  Most of the GPK collectors did not own any crypto. However, they could sign up for the wallet just using their socials. It was totally intuitive.

So not only was the signup for a crypto wallet seamless, the community already existed and the new digital artwork made the original cards even more attractive.

As William spent years working as Head of Finance in licencing with Disney, he also understood the concept of earning a percentage from the secondary market. “It is not fair that the creators of the digital artwork only benefit from a primary market, it’s much more appetising if they can also earn points from a secondary marketplace.  So using smart contracts we have built in a percentage earning from secondary sales.”

William also remembers the estate of AA Milne ended up suing Disney as they felt they were not being paid enough royalties. “I mean the estate has to rely on Disney reports and had no way of tracking all the purchases. Of course now, with blockchain these secondary sales are all recorded.

“So if you are a big player, like the Winnie the Pooh estate, you can afford to hire lawyers but what if you were a small time photographer, how on earth, pre blockchain, could you have tracked the use of your images? Another game changer literally.”