While the NFT market has come a long way since crypto kitties, we are still yet to see many projects transcend their web3.0 roots. It could be argued outside of BAYC celeb endorsements circa late ‘21 we are yet to see a web3.0 native brand grab significant attention share from the mainstream. Now before I get a flood of DM’s shouting about the achievements of Pudgy Penguins, Crocs X Doodles and more, I get it, stuffs happening but my point remains, beyond a small handful of isolated partnerships the appeal of NFTs, or more specifically generative PFP collections, remain very much confined to a subset of crypto natives. *Update since originally writing this, Luca and the Pudgies team continue to crush it.

Despite this, at Shufl we remain convinced that over the coming years we will see more web3.0 first brands breakthrough and transcend from being simple PFP collectibles to genuine parts of accepted mainstream culture.

The true value of web3.0 lies not so much in the tech but in the shift it has created around how we build communities and align incentives blurring the lines between corporate and customer. Our belief is that we can (and will) create native web3.0 communities that go on to cross this chasm.

There is something about generative art and PFPs that makes collecting more accessible to the mainstream that is harder to replicate in 1/1s and the fine art space. Whether it’s the feeling of being part of something bigger, the ease of comparison or the fact that generative collections are largely more liquid, there is no denying that they stir something in us on a human level. And while some may be quick to highlight this as a crypto only phenomenon, one only has to look at Pokemon cards or football stickers to know this isn’t anything new. The difference now is that collectibles can be used in new and exciting ways that allow a deeper, more connected experience.

We’ve seen many projects, even many successful one’s, maintain a web2.0 mindset that keeps the community at arms length and are reluctant to give up too much control. While we don’t suggest everything requires flirting with securities laws till Gensler shows up at your front door we do believe that the projects that build with a grass roots, community focused approach will be the ones which achieve lasting success.

While the accessibility and relatively low barrier to entry has seen children not even in their teens successfully launching collections and the space being heavily saturated, there remains a clear opportunity for serious projects run by established teams to cut through the noise and stake their place at the table.

We’ve barely scratched the surface in terms of mainstream brands stepping into the digital collectible space and yet it feels that unless there is a seismic shift in the trajectory of current generations we will continue to see exponential growth in digital economies. While the entrance of these established players into the NFT space will no doubt help to grow the size of the overall market, these legacy brands will have a hard time convincing shareholders or board members to offer a comparable shifting of their ownership structures that can match the emerging native communities.

While NFTs are still largely considered to be simply on chain representations of generative art there is no denying the breakthrough technology they are underpinned by. As the space continues to mature, verifiable ownership, digital provenance and the immutability of the blockchain will see the gradual tokenisation of everything from airline tickets to property deeds. Shufl’s unique understanding of this ground breaking technology will allow us to play a key roll in helping shape the future of digital ownership.

Now, we have seen unprecedented change, growth and evolution within the NFT space over the last few years and we expect to see more change as we look forward. There is no way to predict how the market will look in a year let alone five. But we feel that NFTs are here to stay and we’re betting the house on it. Over the next twelve months we will be rolling out various new collections across different blockchain ecosystems. Some may be more experimental than others but they will all be underpinned by a commitment to delivering quality art and creating meaningful experiences for our communities.