Brandverse Insights #7

On this week’s edition of Brandverse Insights, we reflect on an awesome conversation with Lunch Hour guest Justin Hochberg, CEO of Virtual Brand Group. Justin’s award-winning company strategically accelerates consumer brands’ global businesses by innovatively leveraging Metaverse & web3 technologies. He’s worked with global brands including Forever 21, Barbie™/Mattel™, The Voice™, NBC, and JoJo Siwa’s created teen band sensation XOMG POP!

On the show, we discussed how Justin started VBG, building partnerships with Barbie and The Voice, and the ever-changing metaverse landscape. Here is a quick recap of the conversation and the takeaways from the conversation with Justin.

How it began

• The rise in metaverse popularity coincided with COVID-19 and the monumental shift it represented in user habits and needs.

• Kids and their parents began to spend more time on digital devices and searched for more immersive and interactive experiences.

• After witnessing this dramatic shift firsthand, Justin realized that global brands would need to establish their own presence in these worlds.

How can businesses create Web3 partnerships?

• Justin won his first clients by focusing on relvant and personal storytelling. Simply relating to the lives of the executives he was speaking to.

• He simply shared his children’s experience spending time and enjoying Roblox. The parents he was speaking to quickly related to him and understood the value that came to establishing a presence in these metaverses. That is exactly what Justin was selling.

• When pitching a business, focus on the value you’re providing, not the technology that is behind it.

• Don’t spend too much time on the blockchain tech - focus on the metrics and engagement that matter to businesses.

Some Metaverse quick stats - According to Justin & Demand Sage

• Virtual Brand Group’s Barbie campaign had over 300 million engagements on Roblox.

• 100,000 X more data points in 3D than 2D

• As of 2024, there are more than 600 million active metaverse users worldwide.

• Roblox is the most popular game on Metaverse, with 70.2 million daily active users. 

• 51% of Metaverse users are under 13 years old.

• Metaverse Market is anticipated to reach a value of $74.4 billion in 2024.

• The user penetration is predicted to be 14.6% in 2024 and is expected to increase to 39.7% by 2030. 

• 25% of People Will Spend At Least One Hour Per Day in the Metaverse by 2026.

What’s next

• Justin is focused on helping brands and influencers provide real value to their loyal followings by leveraging blockchain technology.

• This will allow people to be rewarded for their time and engagement and use the tech the way it was meant to be used.

• He is also focused on creating unique digital accessories to allow fans of the most popular brands to customize their digital avatars and metaverse experiences.

This week, you’ll also find another in-depth take by Roman as he provides insight into a new L2 protocol called BLAST and why you should have it on your radar. As always, make sure to enjoy the weekly round-up to stay updated on all the Web3 happenings.

This Week in Web3

🦾 OpenAI introduces Sora, their text-to-video model. Sora's new AI model can create realistic and imaginative scenes from simple text instructions.

🎮 NFT project, Okaybears Bed Wars, was chosen by Epic Games to be added to Fortnite Game's most coveted Creative category, Epic’s Picks.

🤖 Robotos, a NFT Project which gained much fanfare in 2021 is now shutting down after 2.5 Years struggling to gain traction in a new web3 world.

👕Veefriends announced their first collab of 2024 with Menswear Dog. Founded in 2013, this infectious brand brings to life its fresh new take on menswear fashion featuring their beloved Shiba Inu, Bodhi, and has since made splashes on the pages of GQ, Time magazine, The New York Times, and more. Hoodies and long-sleeve tees will be publicly available on February 21st.

⛓ Eigen Layer is a trust layer that provides developers with access to the Ethereum staked capital base and decentralized validator set. It is now the fifth largest DeFi-protocol following $4.3 billion in fresh inflows over the past 10 days.

🎨 Doodles released the Stoodio - the mobile-first, multichain home base for Doodles that lets anyone create a uniquely personalized and endlessly customizable character in a one-of-a-kind style.

⛰ Axie Infinity has given Cool Cats 200 NFTs to give away to holders through their Gift of Axie initiative.

🕹 Overworld, the developer partnered with blockchain games publisher Xterio, announced today that it has raised $10 million in a seed funding round. The studio is working on its first game, also temporarily named Overworld, a web3 free-to-play action RPG.

🤝 Animoca Brands has extended its reach into the Middle East and North Africa (MENA) market, partnering with Abu Dhabi-based Param Labs to launch Web3 products.

💰 Bankrupt crypto lender Genesis Global on Wednesday received permission from a U.S. court to sell about $1.6 billion in Grayscale cryptocurrency trust shares as part of its effort to repay creditors. - According to Reuters

🐻 OKAY Bears announce that holders will be granted an allowlist spot to their next drop, OKAY Dogs.

🤝 Ripple has acquired a New York crypto trust company, Standard Custody and Trust Co., as it is expanding its US options. - According to CoinDesk

The Rise of BLAST L2: A New Era in Crypto Investments

In the ever-evolving landscape of blockchain, a new player has emerged that's capturing the attention of crypto degens and investors alike. BLAST L2, a novel protocol introduced by Pac-Man, the founder of the polarizing Blur NFT marketplace, is making waves with its unique approach to garnering adoption. Backed by Paradigm VC, BLAST L2 was officially announced in November and has since been a topic of much discussion.

A Gamified (and dopamine filled) Airdrop Strategy

At the heart of BLAST in its current form is a point system designed to incentivize users to lock up their Ethereum on the platform. Users who commit their ETH are rewarded with spins on a virtual wheel, each spin earning them points that contribute to their overall standing on the platform. This gamification of and token lock-up has been polarizing among the crypto-savvy, with some questioning the wisdom of locking up funds without a tangible product in return. This hasn’t stopped NFT Degens and crypto natives from flocking to the platform….

A Sleeping Giant 

Despite the skepticism, BLAST L2 has seen an overwhelming influx of users eager to participate in its ecosystem. The platform currently has over $1.6 billion in locked assets, with over 130,000 users having signed up. This averages out to more than $12,000 committed per user. Remarkably, the platform has raised 10% of the funds that other competitive Layer 2’s like Arbitrum. BLAST L2 has also hosted a "Big Bang" competition, drawing over 3,000 companies vying for investment opportunities and marketing support from the platform. This initiative highlights BLAST L2's commitment to fostering innovation and growth within the crypto space.

Upcoming Airdrop and Mainnet Launch

The emergence of BLAST L2 comes at a critical juncture in the crypto world. The Blur marketplace, also founded by Pac-Man, has already demonstrated the potential for disruption by challenging the dominance of established players like OpenSea. The airdrop is currently scheduled for May, and it will send waves throughout the industry - good or bad. 

Looking Ahead

When looking at Blast, there’s no doubt they understand how to bring interest and incentivize users to the platform. But beyond an airdrop, free money, and points on a wheel - what disruptive innovation will the platform bring? How will they challenge other L2’s with already dominant market share? There is a lot still to be understood about how the platform actually intends to function. Will it live up to the type of disruption that the Blur NFT marketplace brought to ETH NFTs? There is a big difference between an NFT marketplace and an entire L2. Only time will tell. Until then, the crypto world watches as billions continue to flow into Blast.

Wrap-Up

Thanks for reading! If you found this content insightful, consider sharing it with a friend or colleague looking to break into the Web3 industry. And follow us on LinkedIn to never miss a newsletter or our weekly LinkedIn show, Brandverse Lunch Hour.

With Web3 love,

Mina & Roman