Creators and Crypto — Do They Mesh?

Photo by Onur Binay on Unsplash

Content creation has morphed from being just a hobby to becoming a full-time job, with a vibrant ecosystem of its own: The Creator Economy. In a recent survey of children in the United States aged 6 to 17, 75% chose being a YouTube as their desired career path.

An estimated 50 million people currently make up the creator economy with Instagram, YouTube, and Twitch, having the highest user count. Recent statistics reveal that 2 million people take content creation as a full-time job which they earn money from (Gen Zs, especially), while others would consider themselves amateurs.

Recent reports suggest content creators earn big bucks, surpassing the salaries of C-suite executives. For example, TikTok stars Charli and Dixie D’Amelio grossed $17.5 million and $10 million respectively last year. To shed more perspective on these gargantuan numbers, this is higher than the current salary of S&P 500 executives, who have a median salary of $13.4 million.

These numbers are just the tip of the iceberg considering the flow of marketing towards leveraging creators’ communities, to grow brand awareness and influence their brand perception. This reflects the tendency of consumers to trust User Generated Content, rather than traditional advertisements, proven by a recent study by Nielsen. Influencer marketing is currently known as the most effective marketing medium with the highest ROI for brands and individuals alike.

Currently, a large proportion of creators’ earnings come from ads, brand endorsements, merchandising, and few have pivoted to sponsorship deals, merch sales, and the likes. If there’s one thing that creators have proven, it’s that community is currency. And whoever holds the numbers has the power.

However, it’s not all a bed of roses. These platforms are putting policies in place that progressively put a stranglehold on the monies influencers earn, especially through ads.

The problems faced by Creators in Web2

Social platforms such as Twitch, TikTok Instagram, Facebook, YouTube, Twitch and the likes, serve as intermediaries linking the creators with their audiences. They keep full control of all content on their platforms and institute strict laws and guidelines that are sometimes hard to adhere to. This leads to demonetization or worse — the sudden suspension of their accounts. This means that creators on these third party platforms are at risk of not only losing their potential earnings, but also the community that they’ve built up from day one, putting them in a rather precarious situation.

These laws and policies are, most times, vague and hard to adhere to. For instance, a recent ad policy change instituted by YouTube in 2020 mistakenly demonetized many channels. The abrupt change in policy caught journalists, activists, and many professional content creators off guard. Most lost thousands of dollars in revenue and couldn’t appeal the decision and for those whose channels they returned, the thousands of dollars lost in the time they were away were not repaid at all.

A recurring issue in creator spaces has been copyright infringement. Social platforms, although instituting policies to curb the issue, have been unable to stem the tide. For instance, in 2020, YouTube faced a class action by Content creators, Grammy-winning composer and musician Maria Schneider and Pirate Monitor Ltd., for not doing enough to prohibit piracy of their content on their platform.

To make matters worse, government policies such as the DMCA are skewed to benefit larger corporations, than content creators themselves, often taking down content that is not meant to monetize their media but rather use them as references.

To keep their audiences and avoid penalization, many creators are forced between a rock and a hard place: sacrifice your authenticity, or be penalized. Audiences are now more than ever, getting content tailored to fit algorithms and ad policies. And these algorithms, never benefit the consumers or creators, but the platforms themselves.

Perhaps this wouldn’t have been the case if they had complete control of their content and community.

Crypto: An opportunity for content creators to take back control

Photo by Brooke Cagle on Unsplash

Where then, do Web3 technologies, specifically cryptocurrencies come into the fold for creators?

Cryptocurrencies hold huge promise for the creator economy. This is effectively the medium in which content creators will have firm control over their media as well as their audiences. The ever-present danger of losing their livelihoods, and community, has gone out of the window. For the first time ever, fans can now be rewarded for their loyal following and mutually stand to gain value from the growth of the creators’ ecosystems over time.

With social tokens/artist tokens and NFTs, content creators and fans alike, receive rewards for their efforts, unlike social platforms, where a large percentage of the revenue goes to the platforms.

The launch of Veefriends by Gary Vaynerchuk has laid down a blueprint for building a community via NFTs. His NFTs interface with smart contracts to give real-life utility, such as VIP access to conferences and opportunities to interact with him personally.

A great example of a social token is RAC, launched by a Grammy award-winning producer, known by the same name — RAC. Others include tokens by Spencer Dinwiddie (NBA player), rap star, Lil Yatchy, and many more.

BitFans — Power to the Creators of Today

While many celebrities, athletes, and even sports organizations have launched their own tokens, BitFans is focused on bringing tokenization to the world. We believe that individuals, beginning with creators should be given the ability to incentivize their most loyal fans and gain direct access to them regardless of which social media platforms they’re on.

BitFans is a major player in the new creator economy. It’s a platform where content creators and fans can create and hold their community tokens, and offer exciting perks and benefits to their supporters. The fans translate from mere spectators to key players and believers in the brand of a content creator and gain exclusive access to various resources.

To leverage your community as a content creator, and tokenize your brand, reach out to us or visit any of our social media profiles.



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