We'll keep this brief, because you probably have some egg nog to get to and there are already so many year end lists to read that (Xzibit voice) your year end lists need year end lists. Here at Myosin HQ, we've already gathered around the (metaversal) fire and given out our Secret Santa NFT's so, in the spirit of the season, we're giving out props to other corners of the web3 industry in celebration of a formative phase in this crazy space.

Back next year. Kisses!

NC

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Memecoins

The viral moments behind $BONK, $POINTS, $TURBO, $PEPE and other meme coins deserve a deeper look. While these tokens are a way for degens to earn a quick buck, the FOMO draws more people in to the ecosystem. $BONK is Solana's first meme coin and $POINTS is Farcaster's first community token. Solana Saga phones are now sold out and trading on eBay for $10,000/phone. $POINTS put a spotlight on the Farcaster community and the KOLs in the space. Give a dog a bone and he'll find his way home. Give a person some $BONK and he'll shill his friends to join in on the action.

We need more meme coins launching on the blockchains that are struggling to acquire new users. Normies want a clearer narrative of why these meme tokens exist in the first place. There's a way to acquire net new wallets OUTSIDE our industry if these meme coins are rooted in consumer insights. Make no mistake -- these are cultural stablecoins that tap into the zeitgeist online. There's a huge opportunity here to bring more people into web3.
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Brands Entering Web3

2023 has been a rough year for web3, but that hasn't deterred trailblazing brands from entering, building, and executing on the blockchain. In fact, entering during this slower period allowed established brands like Nike (.SWOOSH) and Starbucks (Starbucks Odyssey) to acquire a larger share of attention, build dedicated communities, and run experiments with less of a spotlight.

Additionally, web3 native communities are becoming brands themselves. The most notable example of this is Pudgy Penguins, boasting 1.1 million Instagram followers, 250k Tiktok followers, and 130k X followers. The fact that there are significantly more followers outside of X (the primary social media platform for crypto and web3) indicates that Pudgy Penguins has broken the historically difficult barrier of reaching mainstream audiences. Pudgy Penguins is going physical as well, with toy distribution partnerships with retailers such as Walmart, Smyths, and Hot Topic, and projected sales of ~$10 million over 8 months.

This trend will likely accelerate going into 2024, as brands explore new ways to engage, acquire, and retain audiences that are becoming crypto-curious, looking for something fresh, and increasingly care about ownership.
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The Rise and Adoption of Layer 2

In 2023, Layer 2 blockchains (think of them as fast lanes on a busy highway) gained momentum, reaching $13 billion in total value locked across their contracts in November, providing quicker transactions and expanding possibilities on Ethereum.

I believe this development mainly comes down to two factors. Firstly, Ethereum’s high gas fees during the bull market left an indelible impact on users, prompting them to seek alternatives. Secondly, Layer 2 networks emerged in the bear market thanks to effective marketing campaigns by development teams like Base with their “Onchain Summer” campaign, Optimism with “We ❤️ The Art,” and Zora with their “Mint First” feature, incentivizing collectors to mint a piece onchain and share the profits with the artist.

As these solutions gained traction in 2023, and with the Bitcoin Halving approaching, potentially initiating a new bull market, we can anticipate a 2024 blockchain ecosystem that is more inclusive, efficient, and capable of supporting a wide range of applications, from finance to Social.The future onchain seems bright!

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The Year We Saw Brands Starting to Adopt Generative Art

I’ve long been fascinated by generative art. A marriage of art and code that results in an unpredictable rendering, there is beauty not only in its end form but in the element of surprise which accompanies it.

While generative art has been around since the 60s (you heard that right, before cell phones and mainstream internet), its popularity has skyrocketed in recent years. This past year especially saw not just more collectors flock to generative art (cue this article about generative art being the next frontier for NFT bros, Lord help us all…), but also more big brands start experimenting in this space. Let’s take a look at three interesting generative artist X brand collaborations from 2023.

Christie’s x Gucci explore generative art & fashion

In July, Christie’s and Gucci teamed up on an auction called “Future frequencies: Explorations in Generative Art and Fashion”. The sale comprised 21 NFTs including pieces from Emi Kusano, Sasha Stilles, Emily Xie, Claire Silver, Zach Lieberman, DRAUP, and more, and took place as part of Christie’s Art + Tech Summit. While the collection of works was beautiful, I did wonder what it would have looked like for Gucci to have lent a bit more than the topical inspiration (of fashion) to the collection. That said, Gucci has been consistently doing a lot when it comes to digital art (have you checked out their art space? Delicious). All that to say, there’s many ways brands can activate using generative art, and partnering with an auction house is one of them, which I’m sure we’ll see more of in 2024.

Refik Anadol x Bulgari on the Serpenti Collection

We’re slightly deviating from the generative art paradigm for this next one, but how could you not talk about brands and art without talking about Refik Anadol? From the MoMA to the Vegas Sphere, he seems to be everywhere these days. But a pop-up he did this year that I thought was interesting was one with Bulgari (you’ll remember he did a big installation with them last year). Brands using generative, multisensory art to showcase their products (in this case, the 75th anniversary pop-up was accompanied by 25 standout pieces from across the collection’s history), essentially use the art as experiential marketing, which is a sure way to create a memorable experience for a buyer. When it comes to luxury, a luxury brand name is only half of the game… having a fascinating story to rave about is more likely to turn buyers into ambassadors.

H&M x Variable

Also in the realm of using generative art to create an experience for shoppers, but less related to luxury and more mainstream, Swedish clothing retailer H&M installed giant generative artwork at their flagship store on Regent Street in London in February. The artwork was made by a creative coding studio and evolved with passersby. Cameras on the ceiling tracked peoples’ positions, showcasing waves and folds on the screen that reflected their movements. I loved hearing about this installation because it epitomized what to me is the beginning of the generative art and retail crossover, in a way that will make generative art much more accessible to the masses.

From auctions to custom activations to ways to enhance a consumer experience, there is no shortage of interesting ways generative art can be used to brands to create unique touchpoints for their customers. I’m excited to see what 2024 will hold… no doubt more of this, and more exploring at the intersection of multimedia, AI-based and generative art.

We’ll just have to wait and see!