It was always inevitable that the world of social media would find a way to use NFTs to monetize its content. Now, one brave startup thinks it has found the secret to getting a head start on this potentially huge market.
As such, CocoNFT promises to provide influencers with a quick and easy way to generate the ever elusive revenue stream. It does this by allowing users to cast NFTs for free and then promote them on their sites. But under the hood, it gets a little more complicated. For example, the platform assumes that both buyers and sellers have knowledge of cryptocurrency wallets. It also requires buyers to browse the gas fee for Ether, which currently costs about $80 for the most common post.
In addition, CocoNFT will implement further fees at the point of sale. It is not exactly an NFT creation kit, but a pipeline to link posts to Rarible. For this service, they charge a 5% commission and add a 2.5% Rarible fee on top of that.
Currently, it would make more financial sense for influencers to advertise on OpenSea through the Polygon network and then share the link on their social media feeds. So this includes the added bonus of zero petrol costs for all parties and allows sharing on all social media sites. And, with Opensea flirting with the possibility of fiat payments, this could be something the audience is looking for. However, expect CocoNFT to evolve naturally as it fine-tunes its system. Perhaps it has every chance of solving the problems that are currently holding it back.
What are the implications for the broader world?
The broader question, however, is whether the idea will take off, and how it will protect its users. Trading of social media posts has barely caught on since Jack Dorsey sold his first tweet. Images, however, could be a completely different story. The truth is that this type of NFT represents a very different kind of beast than the collections we’re engaged in now. Instead of fans looking for the next million-dollar asset, fans are looking to support their favorite internet stars by buying low-priced images in such a way that most of the money reaches the creator. As long as these posts are seen as a way for fans to sponsor their idols, rather than a serious investment, this effort has a real future.
Moreover, in the shadowy world of online fame, people aren’t above the occasional copyright infringement. Therefore, stricter controls need to be implemented to give NFT longevity in this social media minefield. Not only that, but scams have become so frequent in this industry that hardened elements of the community tend to shrug them off. However, a better strategy must come with mainstream adoption of the social media variety. Especially when the less technically intelligent are involved. Anyone with a mother who has asked, “Do you know this Nigerian prince who contacted me via email?” Anyone who has knows the pain.
While it is an imperfect platform, it is still a step in the right direction, leading to a world where NFT is widely available and decentralized trading is the norm.