EP - 23
Will 2022 be the year of NFTs? w/ Gary Vee
with
Gary Vee & Ian Rogers
CEO of Vaynerchuk Media & CXO @ Ledger
Jan 04, 2022
On this special holiday episode of The Ledger Podcast, host Mo Sayed is back for a weekly rendezvous from Paris, joined by two visionaries thriving at the intersection of technology and culture: Gary Vaynerchuk (GaryVee), Chairman of VaynerX, and Ian Rogers, Chief Experience Officer at Ledger.
For this unique holiday special, our guests interview one another, delving into the meteoric rise of NFTs, the foundational principles of GaryVee’s “VeeFriends” project, and their collective predictions for how digital ownership will reshape culture, commerce, and human interaction.
Mo introduces Gary Vee as a household name of web2 who has recently switched gears and went full on web3, becoming one of the most influential figures in the NFT space. Ian Rogers, with his eclectic interests in music, art, and fashion, is similarly lauded for his transition to Web3 at Ledger.
“This is 1998 and the iPhone comes in 2008” – Gary Vee
Key Highlights:
GaryVee’s Operational Leap into Web3 and the Genesis of VFriends
GaryVee, a veteran of Web1 and Web2, described his foray into Web3 as an imperative, driven by his unique learning style. His hands-on approach, born from being a poor student but having a lot of operational success, contrasts with passive learning.
The concept of VeeFriends, a project that is a 40-year execution from day one, originated long before the NFT boom. GaryVee revealed that core characters like Patient Panda and Empathy Elephant were conceived in 2018 for a desktop toy line called Workplace Warriors, stemming from his desire to create collectibles and provide escapism for people having tough days at work.
The Blazing Speed of NFT Innovation and Communication
“The speed in which technology moves today is so fast because the communication infrastructure is now in place”. – Gary Vee
Platforms like Twitch, YouTube, TikTok, Twitter, Instagram, Discord, and podcasts facilitate rapid dissemination of information.
This differs significantly from Web2’s early days, which relied on slower blog formats for virality.
Navigating Challenges: Initial Setbacks and Financial Anxieties
Despite the eventual success of VeeFriends, the launch was not without significant hurdles. GaryVee recounted a devastating event due to a small section of code that was wrong, which didn’t cap gas fees for a Dutch auction.
This led people to think they were paying 35 000 in gas fees, and this ultimately collapsed the launch.
Compounding this, ETH was at an all-time high when VeeFriends launched, only to collapse from $4,100 to $1,700 within 30-50 days, creating immense personal stress.
He admitted to incredibly anxious moments through the summer.
“I had a massive commercial success and I was financially underwater. I had a bigger tax liability than I had which was incredibly devastating for a little while”. – Gary Vee
This challenging period, however, forced innovation and led him to deeply reflect on many aspects of the project.
The Profound Idea of Creator Accountability and Enduring Value
“Every single creator of a project will be exposed for her or his intent when this hits the fan because they have the ability to make good”. – Gary Vee
Gary presented a provocative thesis on the long-term value and responsibility of NFT creators, a concept he feels is not widely discussed. He argued that creators are now forever accountable, unlike in previous market cycles.
He shared a conversation where someone asked about an accidental rug pull, to which GaryVee replied, “You can’t”.
His core belief is that creators, having made substantial money, have the ability to make good even if the market collapses.
He emphasized his willingness to mortgage opportunities of the next decade to make whole the people that bet on me in 2020. He extended this to other creators, suggesting they could use their initial profits to create physical art, hold classes, or ship free products to holders.
NFTs as Identity, Tribalism, and the “Flex” Economy
GaryVee believes the value of NFTs for his community is partly tied to access, and partly to trust in his 20-year track record. A smaller percentage of the community envisions VeeFriends becoming the Disney/Pokemon/Transformers of the future with collectible value.
He highlighted the intrinsic human desire to flex and establish identity through purchases. Comparing it to owning a rare handbag from London or Hong Kong.
“You come back on your private jet with enormous pride that you have this and you can’t wait to flex like a motherf****r”. – Gary Vee
Revolutionary Use Cases: Brands, Membership, and Real-Life Utility
The conversation extensively explored how NFTs will transform brands and offer real-world utility.
Gary Vee sees NFTs revolutionizing membership clubs and reward points, similar to how airlines gamified flying with rewards programs.
He envisions a future where purchasing a product, like an expensive pair of sneakers, comes with a free NFT that could become worth more than the initial purchase, especially if the associated artist or brand becomes iconic.
He highlighted the potential for NFTs as receipts, citing luxury brands like Chanel or Tiffany’s, where a limited-edition NFT tied to a purchase could become valuable if the artist gains prominence.
Marketing as a Profit Center: A Profound Shift
“NFTs have created the first time in history where i think emphatically we can say that marketing is on the precipice of becoming a profit center instead of a cost center”. – Gary Vee
Despite his unwavering belief in the long-term potential of NFTs, GaryVee issued a strong warning about financial responsibility. He urged listeners to make decisions based on their actual financial situation.
He advised those with significant debt or limited savings to consider selling an NFT for a substantial profit, even if they “diamond hands” out of loyalty.
Key Insights on the Future:
Gary Vaynerchuk
- He compared the behavioral shift to the introduction of credit cards in the 70s, which made spending feel less tangible than cash. He observed that people in crypto often spend ETH like it’s not real because it’s a digital asset.
- He believes the gamification of enhancing a purchase will drive significant brand adoption, with NFTs serving as powerful rewards and loyalty mechanisms.
- He highlighted the fundamental human act of communicating through what we purchase, and how NFTs, with their global, always-on liquidity, will revolutionize this.
Ian Rogers
- Ian emphasized the power of a global always-on market where anyone could bid on it at any time. He believes this frictionless environment will give items more value and create more demand because they are accessible by everyone.
- He highlighted that this new market will unlock value from items currently collecting dust in people’s homes, from small collectibles to expensive luxury goods, which are too difficult to sell through traditional means due to friction.
Watch the full episode below:
Reading List
Learn more about these topics mentioned in the episode, or explore our library of articles on Crypto, Security, and Regulation on Ledger Academy