Flash: Gucci X Yuga Labs 💥
Flash: Gucci X Yuga Labs 💥
Gucci announced a partnership with Yuga Labs, the company behind CryptoPunks, Bored Apes, Meebits, and Otherside, among others. Here's the big picture and why it matters.
Hey, it’s Marc. I write about Bitcoin, Web3, and technology. ✌️
⏱️ Reading time: 3 min
Gucci is strengthening its ties to Web3.
On Monday, Gucci announced a multi-year partnership with Yuga Labs to explore “the intersection between fashion and entertainment in the Metaverse.”
This is big. 🤯 Why?
Yuga Labs is one of the biggest IP holders in the NFT space. As funding and royalty fees decrease (cf. royalty fee wars between NFT exchanges), IP owners & NFT communities are looking for new revenue streams by growing beyond their Web3 communities into mass media brands.
They are doing that by:
Merging digital and physical with IRL community experiences and products
Partnering with existing mass market brands to create co-branded physical & digital experiences and products.
Let’s look at some examples:
In January, Doodles launched “Doodles V2” on the Flow blockchain and to expand its franchise into music, animation, consumer products, live events and more. We want to “connect digital identity with animation and storytelling”, said Doodle CEO Julian Holguin.
Last month, Pudgy Penguins announced its partnership with Retail Monster to launch its Pudgy Toyline on retail shelves globally. Retail Monster is a renowned name in the industry, with its network spanning several major retailers worldwide, representing giant brands, such as Dreamworks, Hasbro, and Disney.
Bryan Pellegrino, CEO of LayerZero Labs, omnichain interoperability protocol, said:
“A lot of utility at the moment is very short-term. What really rewards everyone long-term is to build a whole brand universe and ecosystem around brand IP.”
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So, what's next? 👀
IP owners are just one of many actors within the Web3 space that try to appeal to the mass market. They all have their own challenges, but they are all dependent on one another. I will expand on this concept and the challenges of each actor in a separate post.
Naturally, the best NFT collections will become brands and communities that transcend the Web3 bubble and go mainstream.
The most progressive brands find ways to tap into Web3 communities and become culturally relevant for the next generation of digital-first consumers.
Talk soon,
– Marc
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