Web3's Marketing Hype: A Lesson in Misguided Predictions
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Chapter 1: The Rise and Fall of Web3
Last year, just before the crypto crash, Web3 was all the rage. Many were even jumping ahead to discuss Web5. To be frank, I found it difficult to grasp the enthusiasm surrounding it.
I consider myself fairly astute, yet I couldn't shake the feeling that I was missing something crucial. With numerous respected figures endorsing Web3, I assumed it must have significant merit. However, it turns out many were mistaken.
Web3 is no longer on the rise. The notion of it as the "next" phase of the internet, as touted by firms like McKinsey & Company, feels disingenuous in October 2023. We are now left to reflect on its legacy as a marketing failure.
Section 1.1: What Does Web3 Really Mean?
A key issue with Web3's promotion was the ambiguity surrounding its definition. It appeared that not even its staunchest advocates could precisely articulate what it entailed.
The confusion seems to stem from a clash between technology and intention. Is Web3 about empowering users, or is it merely a label for products that utilize NFTs or blockchain? These two concepts are fundamentally different.
According to the McKinsey article, Web3 promises users control over their own data without intermediary involvement. This is contrasted with the centralized nature of Web2, dominated by tech giants.
However, when examining examples of Web3, the author cites corporations like JPMorgan, Nike, Securitize, and 100 Thieves as case studies. These instances exemplify the very centralization that Web3 aims to dismantle. While these companies utilize technologies associated with Web3, this does not inherently place them within the Web3 framework.
JPMorgan's blockchain transaction, for instance, was a collaboration with another large financial institution, reinforcing the idea of centralized power rather than user control.
Section 1.2: Corporate Interests vs. User Empowerment
Examining Nike's involvement in Web3, often presented as a beacon of innovation, reveals a stark reality. The company's .SWOOSH campaign aimed to create a digital community for athletes, but its reception has been underwhelming.
Despite the immense popularity of Nike, their recent NFT launch garnered minimal engagement, with only 19 interactions on a supporting blog post. Their NFT sales amounted to a mere fraction of their annual revenue, highlighting that the initiative failed to resonate with consumers.
While Nike continues to promote upcoming drops, the lack of visibility on their main social media accounts raises questions about their commitment to the Web3 narrative. Their efforts seem more like traditional marketing strategies than a genuine user empowerment initiative.
The first video, "2024 Web3 Marketing Predictions | What Crypto Marketers Need to Know," delves into the current landscape of Web3 marketing and offers insights into what marketers should consider moving forward.
Chapter 2: Lessons from Web3's Marketing Approach
The second video, "Your Web3 Business Will FAIL Without A Whitepaper. Here's How To Make One," discusses the essential components of establishing a successful Web3 business and the necessity of clear documentation.
What I gleaned from the failed marketing push for Web3 are several crucial lessons:
Wealthy endorsements do not guarantee value.
I initially doubted my understanding of Web3, believing that the problem lay with me. But now, it feels validating to see the truth unfold. Even influential figures like Jack Dorsey have struggled to generate excitement around their ventures.
True innovation doesn't rely on hype.
If Web3 enthusiasts genuinely find value in its offerings, that's commendable. However, many advocates felt compelled to market it as an unavoidable trend rather than letting its merits speak for themselves.
Recognizing manufactured excitement.
Companies like A16Z and JPMorgan attempted to push the Web3 narrative, but I encountered no real individuals who bought into this hype. The marketing felt contrived and heavily funded rather than organically driven by genuine interest.
As we reflect on the aftermath of Web3, it becomes evident that the grand promises made during its rise were largely unfulfilled. The discussions surrounding its "potential" have overshadowed tangible achievements, serving as a cautionary tale against the dangers of hype-driven marketing.
In conclusion, we must acknowledge that true innovation requires no grand marketing campaign; its value will manifest on its own.