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  • 🔊 Why Are Talent Agencies Signing Multi-Million Dollar Web3 Brands?

🔊 Why Are Talent Agencies Signing Multi-Million Dollar Web3 Brands?

Plus: Sue Bird's Retirement NFTs & NFT Gaming Company Raises $10 Million

June 11, 2023

Welcome to The Hype Report where we break down the latest news, stories & insights at the intersection of sports, artificial intelligence & web3.

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Here's What You Need To Know This Week đź“ť

  • Nike's RTFKT Signs With CAA ✔️

  • Seattle Storm & Coinbase Team Up To Launch NFTs Commemorating Sue Bird’s Jersey Retirement 🏀

  • Haun Ventures Leads $10 Million Seed Round For Argus Gaming 🎮

  • Quick Hype 🎯

Let's Dive Into It 🤿

Nike's RTFKT Signs With CAA ✔️

A few weeks ago we saw Rumble Kong League sign with global talent agency CAA.

This week, Nike-owned virtual sneaker studio, RTFKT, has jumped in the mix with the agency.

Outside of representation, RTFKT will also work with CAA to create webinars and educational programs for other crypto and 3D-focused artists on platforms such as Discord and Twitter.

RTFKT was launched in 2020 by Benoit Pagotto, Chris Le, and Steven Vasilev, and secured $8 million in a seed round led by Andreesen Horowitz in 2021.

Nike made an undisclosed acquisition of the virtual sneaker studio towards the end of 2021.

The acquisition came as the hype, pun intended, surrounding NFTs and the metaverse reached its peak.

Since the acquisition, RTFKT has partnered with renowned artists and big brands to launch virtual apparel.

They’re most known for their Clone X NFT collection, developed in partnership with renowned artist Takashi Murakami.

The collection has generated more than $500,000 in secondary sales to date.

Last August, Clone X holders were rewarded with perks, such as the ability to unlock physical RTFKT fashion items including sneakers, hoodies, t-shirts, jackets, hats, socks, and accessories.

Other releases by RTFKT include Cryptokicks, the Genesis AR hoodie, and an AR helmet.

The studio has also partnered with Rimowa and Byredo on a wearable perfume in the metaverse.

RTFKT joins the likes of other web3 projects who are represented by talent agencies including:

Why are talent agencies scooping up web3 brands?

Agencies like CAA, WME, and UTA obviously have massive resources and bandwidth to deploy capital and infrastructure.

Not to mention the numerous relationships, and partnerships they have globally.

But their foray into the web3 space is interesting, to say the least.

My thoughts?

I believe talent agencies are signing web3 brands to capitalize on the emerging market potential obviously, but also it’s a big IP play.

Many of these web3 brands have raving communities mixed with creative elements that make their IP appealing.

With the influence that these agencies have - they’re looking to broker deals (i.e., merchandise, movies, collectibles, etc…) that can be extremely lucrative long-term.

By aligning with web3 brands, these agencies can position themselves as early adopters in this evolving space and open up new opportunities for their clients and themselves.

Seattle Storm & Coinbase Team Up To Launch NFTs Commemorating Sue Bird’s Jersey Retirement 🏀

The Seattle Storm and Coinbase are teaming up to launch NFTs celebrating Storm legend Sue Bird’s jersey retirement at Climate Pledge Arena on June 11.

A pair of digital collectibles will be available for fans, honoring the WNBA star’s 21-year career that included four championships and five Olympic gold medals.

The first digital collectible offers a digital souvenir of the event and access to sweepstakes and discounts at the Storm’s team store.

The other edition will be released on Bird’s social media accounts the day after the game.

It’s the first-ever POAP — “Proof of Attendance Protocol” — token by a WNBA team.

This news is coming off the back of the SEC filing a lawsuit against Coinbase, alleging the company operated as a crypto asset trading platform without proper oversight by the federal agency.

Last week the SEC also sued Binance, accusing the trading platform of mishandling funds and lying to regulators.

To claim the NFT at the game, attendees must scan a QR code, submit their email, and set up a Coinbase Wallet.

By clicking a button, they will land on the claim page where they can enter their Ethereum address to finalize the process.

Once completed, Bird’s jersey retirement NFT will live in their Coinbase Wallet.

Completing this process automatically enters participants into sweepstakes.

The sweepstakes prizes include:

  • An opportunity to win four courtside seats to a Storm game

  • A meet-and-greet with Sue Bird

  • Signed merchandise including a jersey and bobblehead

Additiontionally, 10 fans will win two tickets to a catered suite experience at a Storm game, along with a signed Sue Bird bobblehead.

Haun Ventures Leads $10 Million Seed Round For Argus Gaming 🎮

Crypto investment firm Haun Ventures has led the $10 million seed round for Web3 gaming studio Argus.

The round also saw participation from venture firms such as:

Simultaneously Argus announced the World Engine, a blockchain-gaming software developer kit (SDK) that will allow builders to create their own Web3 gaming ecosystems.

Scott Sunarto, CEO of Argus, says the company aims to not only build the blockchain infrastructure to support emerging Web3 games but also to support developers in expanding their visions.

Sunarto said that Argus plans to use the funding to scale the team and build out its studio and tooling infrastructure.

Breck Stodghill, the Haun Ventures investor who led the round, said that he sees Sunarto as a “missionary” in his efforts to spearhead growth in the greater Web3 gaming space:

“He (Sunarto) believes first and foremost that the power of games to unite folks and the power of crypto is something that should be put together if we can figure out some of the infrastructure problems. If we can create fertile ground for game developers to have crypto as a tool, there'll be some really interesting new games that emerge – and it'll end up being super positive for the people who play games.”

The bear market has slowed investment across the entire Web3 industry, but recently funding rounds for blockchain-based games have started to pick up again.

In March, a16z led a $40 million investment round for gaming studio CCP Games to expand into Web3, and in February, they led a $25 million Series A for Web3 gamified-social protocol Here Not There.

Why is this important?

It’s a great sign for the space that blockchain-based games are getting funded in this market.

I’m a strong believer in gaming being a key major to mass adoption for these reasons:

  1. Gaming has always been a popular form of entertainment, attracting a diverse audience. Blockchain technology can enhance the gaming experience by offering unique features.

    For example, players can own in-game assets like characters, items, and virtual land. They can also trade, sell, and use their assets across different games and platforms.

    Ownership and interoperability make gaming more immersive and engaging, which can attract existing gamers and newcomers to the web3 space.

  2. Web3 gaming introduces the concept of play-to-earn, where players can actually earn real value for their in-game achievements.

    Traditional gaming usually involves players investing significant time and effort into acquiring rare items or reaching high levels of skill, but these accomplishments typically hold no real-world value.

    With web3 gaming, on the other hand, players can earn cryptocurrency or other digital assets that could potentially have real value outside the game.

    This provides an incentive for more players to participate.

  3. Web3 technology is built on principles of decentralization and community governance.

    This means that gamers have a say in the development, and direction of the games they play.

    By leveraging blockchain, developers could potentially involve the community in the decision-making processes, allowing players to vote on proposed changes or suggest new features.

    This gives players a sense of influence over their gaming experiences, which creates a stronger and more engaged community.

Quick Hype 🎯

Thank you for reading!

Talk again next week,

Malcolm

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