Time and patience are the scarcest resources for any brand.

Time and patience are essential, scarce resources for any brand.

Time and patience are two of the most important resources in building a brand. Unfortunately, in web3, these are like luxury items among scarce resources. Cryptocurrency KOL Ruby Wang discusses the challenges of building a brand for PFP NFT projects based on the Azuki Elemental incident.

Summary of the main FUD reasons for the Elemental series release: 1) High expectations. In the past three quarters, Azuki has been one of the few pfp projects with stable and rising prices in the bear market. The Las Vegas event also raised everyone’s emotions and hype to a high point. 2) Announcement and expectation mismatch. The 2-minute animated short film released at the Follow The Rabbit event has high production quality, and the character style has some differentiation from the previous Azuki core series. Therefore, when Elemental was unveiled with a style so similar to the previous one, it caused a lot of shock among holders.

3) Dilution and total value reduction felt by OG Azuki holders. This is actually the most critical issue. The original total of 10K Azuki was positioned as high-end, and Elemental was released with 20K, and the middle human category is difficult to distinguish from the previous Azuki OG series. This to some extent lowers the threshold for new entrants to Azuki, and a price of around 2E can buy an avatar that was previously 10+E. 4) Technical execution flaws. This release not only had a short sale time (only 10 minutes for the first two stages), but also encountered website traffic limiting issues, causing some Azuki and BEANZ holders to be unable to mint Elemental during the first two stages.

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This Elemental release mishap actually exposes a problem that already exists: how can PFP NFTs surpass NFT projects in developing business? 1) Content development, by launching NFTs first, verifying IP stickiness and audience, and then iterating more extensive products and experiences, web3 IP provides higher capital efficiency compared to web2 IP. 2) Content distribution, if the NFT community is well-developed, it will be easier to gain disseminators than web2 IP. This is something that many web3 holders can easily feel. 3) Content production and profit distribution. The potential benefit brought by web3 is that contributors involved in content development can enjoy the brand’s upside, and participate in important decision-making governance through tokens and DAOs. Fans holding NFTs can also receive better product and service benefits.

Reference: https://www.web3brand.io/p/611

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