NFT Renting, Airbnb for Metaverse & Rise of NFT Financialization

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Issue #29

You’re probably familiar with Web2 financial products such as digital-only banks (Revolut), investment apps (Robinhood), and fractional shares (SoFi). In Web3, new kinds of financial products are also emerging. They are designed to help NFT consumers in managing, trading, and investing in digital assets.

Today, we’ll examine the top Web3 startups that are enabling the financialization of the NFT economy. Thinki DeFi + NFT = NFTFi. I will cover these key segments: payment, lending, portfolio management, and other subsectors.

Section 1: Key Market Trends

(1) NFTs are becoming rentable:

  • NFT holders can earn rental income by leasing their crypto assets, while borrowers can borrow an NFT for a set period of time. This democratizes access to NFT ownership, as NFT renting enables users to temporarily own pricey NFTs without purchasing them. In other words, you rent to own rather than buy to own.
  • Companies are building the “Airbnb for blockchain assets” to facilitate listing and transaction of alternative assets.
  • Double Protocol is an NFT rental protocol and marketplace for Metaverse and GameFi assets.
  • IQ Protocol is a protocol that enables digital asset renting and on-chain subscriptions.
  • Use reNFT to list your NFT, the lender sets the price (collateral), length of rental, and repayment.
  • Renfter is an uncollateralized NFT leasing protocol designed to give NFT projects access to a range of additional features.

(2) Rise of NFT marketplace aggregators:

  • Companies are building the “Expedia for NFT purchase”. With NFT marketplace aggregators, buyers can quickly compare prices and get NFTs from different websites. Buyers can save money on gas by purchasing NFTs across various digital asset marketplaces in a single consolidated transaction.
  • Rarible has released an aggregator tool that gives users the ability to buy NFTs from various digital marketplaces.
  • Uniswap (acquired Genie.xyz) and created an NFT aggregator to view listings from OpenSea, LooksRare, NFTX, and other platforms. This tool allows users to compare prices and buy/sell NFTs individually or in bulk.
  • Gem.xyz–You can put multiple NFTs from various marketplaces into your shopping cart on Gem.xyz and pay for them all at once.
  • Flip.xyz is a multi-marketplace for purchasing NFTs from OpenSea and LooksRare.

(3) Non-fungible crowdfunding:

  • As NFT and DeFi converge, new platforms emerge to compete with traditional crowdfunding platforms. Enter decentralized fundraising. Startups are developing the Web3 equivalents of Kickstarter, Indiegogo or GoFundMe.
  • This NFT-based crowdfunding unlocks co-creation and co-ownership. Creators like musicians, filmmakers, and artists can fundraise from their fans through NFT. Fans who back the projects have exclusive participatory rights, such as voting on product features, proposing new ideas, and shaping the project’s direction.
  • Crowdfund NFT is a website that allows businesses to use blockchain technology to create and launch digital asset crowdfunding campaigns.
  • CROWDHERO.CO is a global crowdfunding and NFT-based platform that strives to help creators fundraise from their fans and backers to produce top-notch digital content.
  • Rare FND Crowdfunding is an end-to-end crypto-based crowdfunding platform that pays you to fundraise.

more… !

(🔒 MEMBERS-ONLY) +5 more key trends, backed by real company examples:

🔑 (4/9) How NFT holders earn passive income (5 platform examples)

🔑 (5/9) Who’s building DeFi products for the metaverse (5 platform examples)

🔑 (6/9) How to unlock equal access to NFT ownership (4 platform examples)

🔑 (7/9) What does wealth management in Web3 look like (5 platform examples)

🔑 (8/9) How do the creator economy and DeFi intersect (6 platform examples)

🔑 (9/9) Platforms that help NFT owners maximize profits (4 platform examples)

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Section 2: Market Players & Company Databases

  • 🏢 Total 90 market players. Total 10 niche segments

(🔒 MEMBERS-ONLY) Access the full database:

Section 3: Problems & Market Needs

(1) Lack of liquidity:

  • Because of their unique nature and small market size, many NFTs are illiquid. Even if you own a valuable piece of NFT, it may take weeks or months to find interested buyers who can afford the set price.
  • Web3 startups are creating solutions to help NFT owners liquify–with or without selling their NFTs. At the same time, they offer solutions that can turn idle NFTs into passive income sources.
  • Liquify through online marketplaces. Platforms like OpenSea, Rarible, and SuperRare connect buyers and sellers to help creators secure a sale more quickly.
  • Liquify through borrowing/lending. TribeOne offers customized loan options to purchase your favorite NFT. Nexo lets you use BAYC or CryptoPunks as collateral and borrow up to 20% of the value of your NFTs.
  • Liquify through NFT renting. reNFT allows users to rent or lend their NFTs to others and specialized in 3D lands and game skins.

(🔒 MEMBERS-ONLY) +4 more insights to find customer needs:

🔑 (2/5) Solutions to increase NFT portfolio value (4 platform examples)

🔑 (3/5) Who’s solving the high gas fees in NFT purchases (4 platform examples)

🔑 (4/5) Helping NFT asset owners reduce market risks (4 platform examples)

🔑 (5/5) How to help NFT owners diversify their portfolios (5 platform examples)

Section 4: Next Big Things + New Opportunities

This section will explore: What will the future of DeFi products look like for creators, consumers, and crypto users? Who are the emerging players? What product features are needed?

(1) Buy Now, Pay Later (BNPL) for NFTs:

  • BNPL solutions such as Affirm and Klarna are emerging as a new way to finance online purchases. The same idea is now being applied in the Web3 space. As the use cases for NFTs expand, so will the demand for NFT liquidity solutions.
  • Buyers with limited funds can use BNPL to split their purchase into multiple terms, making NFT ownership more affordable. Lenders earn yields from idle digital assets. For creators or NFT sellers, BNPL can create more sales opportunities since it offers better payment terms for collectors.
  • One impending opportunity is to provide BNPL for NFT categories with a growing fanbase. For example, the growing trends of play-to-earn games and “culture investing”, i.e. betting on hobbies and passions through crypto.
  • Halliday raised $6 Million to help players lower the cost of in-game NFTs.
  • Ape Now specializes in high-profile NFT art such as Crypto Punks and Bored Ape Yacht Club (BAYC).
  • Voyage allows buyers to split NFT purchases into 3 payments.
  • Cedar’s BNPL not only lends money to help buyers purchase NFTs but also lets buyers play and utilize NFTs on day one.
  • Cyan allows users to own their favorite NFT today for only 25% of the price.

(2) Digital banking 3.0:

  • As digital assets continue to evolve, Web3 will be the next evolution of digital banking. New startups will bridge the gap between traditional banking and crypto, NFTs, in-game assets, and metaverse finance.
  • The next wave of fintech products will take the form of embedded finance (ability to make payments, open accounts, and access financial products directly within a platform), Web2&3 integration (connecting blockchain to existing banking systems), and open banking (securely share their financial data with third-party providers in order to access new products and services).
  • Cogni offers Web2 banking and Web3 banking features such as its new crypto wallet and instant payments.
  • Mercury, the banking platform for startups now offers services for Web3 companies, including sending money to crypto exchanges, setting up recurring payments, and sharing receipts.
  • Juno offers checking accounts for Web3 natives.
  • Ramp allows users to buy crypto without leaving their dApp or wallet.

(3) Fintech for DAO (Decentralized Autonomous Organization):

  • DAOs are decentralized organizations that are owned and run by a community of users instead of a central authority. Because DAOs do not have traditional departments like HR or accounting, there are challenges in managing transactions and revenue distribution efficiently among members.
  • Coordinape by Yearn Finance, allows DAOs to autonomously allocate funds and reward contributors.
  • Utopia Labs is a company that provides payroll services and consolidates financial reporting for DAOs, including account and expense management.
  • Deel has started offering its services to DAOs to help them tackle the challenges of hiring and paying their members on a global scale.
  • CR Square offers a bookkeeping solution for DAOs, as well as an accounting and working capital finance platform that is tailored to the needs of Web3 startups.

(🔒 MEMBERS-ONLY) +6 more startup opportunities:

🔑 (4/8) How to create niche NFT rental platforms (3 platform examples)

🔑 (5/8) How to build NFTFi products for B2B sectors (3 platform examples)

🔑 (6/8) How no-code NFT tools can be applied in fintech 3.0 (8 platform examples)

🔑 (7/8) How to create DeFi products for the creator economy (5 platform examples)

🔑 (8/8) How to differentiate NFTFi products via interoperability (4 platform examples)

Section 5: Product Strategy & Recommendation

(1) Mapping value proposition with customer’s problems:

  • Value proposition 1: Unlock liquidity for your NFTs. Customer’s pains: It takes weeks or months before I can find interested buyers. Customer’s gains: Quick return in exchange for my digital assets. Solution: NFTX.
  • Value proposition 2: Making NFT ownership accessible for all. Customer’s pains: NFTs are expensive. Customer’s gains: I can own a portion of an NFT without having to pay for the entire thing. Solution: Otis.
  • Value proposition 3: Buy NFTs all in one place. Customer’s pains: NFT gas fees are so high! Customer’s gains: Save $$$, better prices and buy multiple NFTs in a single transaction. Solution: Hyperspace.

(🔒 MEMBERS-ONLY) +4 more action ideas and recommendations:

🔑 (2/5) How to create NFT products for a niche audience (4 platform examples)

🔑 (3/5) Three types of minimum viable products (MVP) you can start (8 no-code tools recommended)

🔑 (4/5) Four channels to find early users for your NFTFi products (4 strategy examples)

🔑 (5/5) How to use DAOs to bootstrap a customer base (9 platform examples)


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