Whitepaper part 1: The “Why”
We believe that we are in the middle of a titanic shift in how we live, interact and transact with each other globally. Every day, more and more people are joining a global economy and transacting with each other directly regardless of their geographical location thanks to the blockchain revolution.
We believe the world is entering a circular economic ecosystem that includes social media centered on artistic expression and community rewards, paving the way for individuals to be economically self-sufficient. We believe in a future that is geared toward rewarding users rather than large corporations. That is why our goal in Project-X is to create a platform, independent of social media platforms, which enables content providers to take ownership and monetize their content.
Blockchain technology is enabling distributed and trustless ownership and has opened pandora's box. Like any other technology, it is evolving and discovering its use-cases and its true potential. We are slowly but surely realizing that many types of ownership can be moved to blockchain. As Raul Paul famously said: “everything that can be tokenized will be tokenized!”
Non-Fungible Token (NFT)
NFT is a token maintained by the blockchain like any other token with one major difference: it is non-fungible!
To quote Visa’s whitepaper: “Unlike cryptocurrency, NFTs are not fungible, meaning each NFT is unique and not interchangeable with another NFT. In other words, while one bitcoin is equivalent to another bitcoin, no two NFTs are the same.”
The current state of NFTs for digital art
The first NFTs were created in 2014 but it wasn’t until early 2021 that NFTs exploded. According to Nasdaq, The number of transactions grew from 11,000 in January 2020 to over 600,000 in 2021.
In March 2021, the digital artist, Beeple, made history by selling his art piece for an astonishing $69.5 million. Many experts believe this event marks the beginning of a new area where art is going digital.
Another noteworthy example is the crypto punk collection from Larva labs which is one of the first (if not the first) NFT collections. Their 10000 piece collection was distributed for free for anyone to claim. Today, the cheapest crypto punk is worth 78 ETH or exceeding $350,000 million at the time of writing.
Excesses of NFT market
This amazing growth unsurprisingly resulted in a massive hype cycle where NFT marketplaces quickly filled up with thousands of JPEGs and GIFs. Speculation around the growth potential of some of these assets resulted in unprecedented gains for some these assets.
One can not be interested in crypto and not be open-minded. Excess and hypes have been part of the crypto market from day one. Yet, in our humble opinion, the NFT art marketplace has lost its way.
We believe that the NFT art marketplace should be about the artists and content creators and not a place to just trade a bunch of JPEGs.
We believe that helping digital artists to find an alternative path for monetization other than advertisement revenue should be a critical part of any healthy NFT art eco-system.
We believe the NFT revolution is about joining a global economy. An NFT art marketplace should be an addition to already existing channels to help the artists find their own audience.
In this article we wanted to answer the “Why”. In a series of articles that follows we are going to outline Project-X plans on how we are planning to create a healthy, art-oriented NFT marketplace:
Part 2 — Market strategy:
In part 2, we will go more in depth in how we are planning to approach the market and share our plans on how to build our reputation and followings online.
Part 3 — Tokenomics:
Due to unexpected rise of the price of our PEX token, we had to go back to the drawing board and re-plan our token distribution. In part 3, we will explain the token distribution and how we bring economic value to our investors.
We are just getting started!