Applications and Use Cases

Entrepreneur Gary Vaynerchuck Looks to a Promising Future for Blockchain and NFTs

May 12, 2021

Entrepreneur, CEO and self-proclaimed business builder Gary Vaynerchuk believes blockchain and non-fungible tokens (NFTs) are set to transform business and investing over the next few years.

Vaynerchuck was recently interviewed by CNN Business and said he believes "smart event" tokens have the potential to generate real value for NFTs instead of digital art. The business bigwig has rolled out his own VeeFriends NFT collection, which offers buyers three years of access to Vaynerchuck's VeeCon business and marketing convention. Buyers may purchase the tokens using Ethereum's Ether cryptocurrency.

Access and entry to events and memberships are only the beginning of how Vaynerchuck views the future for NFTs and blockchain, however.

"This is going to take some time but NFT is non-fungible tokens," said Vaynerchuck. "It will be important for everybody here and the reason I launched VeeFriends is to help people understand it’s not just about the art that sells for $69 million. The thing behind the token is like a credit card behind the plastic, like a ticket behind the piece of paper if you are going to a concert."

According to Vaynerchuck, smart contracts are the main part of NFTs that will eventually impact everyone's lives, just like the internet.

"It took me months of hardcore thinking of how profound this was and I believe it’s there," said Vaynerchuck. "Just one caveat: I do believe that 98 percent to 99 percent of NFT projects will fail as investments but that’s similar to me as internet stocks in ’99 and 2000. But was there. The internet changed our lives and the blockchain and NFTs will do that as well."

When it comes to NFTs, one of the first questions people ask is why they are necessary to accomplish something that can already be done. Vaynerchuck likens that thinking to early opinions about the internet. He provides an example of a pizza shop selling NFTs and ultimately using them as marketing collateral.

"Lou’s Pizza Shop issue NFTs that make 1,000 tokens, so now he sells those tokens," said Vaynerchuck. "The regular pizza pictures just give you a 10% discount, when the gold gives you unlimited free pizza. The person that buys it owns the NFT and after six months can sell it on the blockchain. Lou gets a royalty on that transaction because you can put royalty contracts under these NFTs. The individuals that hold it, when they sell it in four years on — I make a royalty. In five years we are all going to have public wallets like public social media accounts and we’ll look at each other’s public wallets and see the tokens there. The token is a marketing collateral. The way everybody in business needs a social media account to be relevant in 2021 is the same way everybody will need an NFT strategy."

Vaynerchuck offered another example of how NFTs can "cut out the middle man" in business. An up and coming author, for instance, could sell NFTs to their social media audience to fund a new project. The buyers could then get a percentage of the royalties from future earnings, cutting out the publisher entirely. The same could be done for music artists and other creators who wish to work independently.

While Vaynerchuck's views may seem radical to some, he offers his past experience as a testament to his vision.

"Only two times I have been told I’ve gone too far," said Vaynerchuck. "Putting my Dad’s wine shop on this thing called the internet and launched in 1996. And when I started this show on this thing called YouTube and told people to use Twitter and Facebook to build it for Web 2.0. And now we are here at Web 3.0."

Edited by Luke Bellos



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