# ETHWarsaw 2023: Matt Kielczewski, ETHWarsaw - NFTs meet real world use cases

- Channel: [ETH Warsaw](https://streameth.org/eth-warsaw)
- Date: 2024-10-07
- Duration: 28:17
- Watch: https://streameth.org/watch/yt-ScwYcixLfpQ
- YouTube: https://www.youtube.com/watch?v=ScwYcixLfpQ

## Description

Matt Kielczewski covers a new era of NFTs as the industry embraces real world use cases for the technology.

Follow us for more updates: https://twitter.com/ETHWarsaw

## Transcript

Let's uh let's give mat a round of applause hey everyone so I'm Matt I uh do the socials here uh in marketing at eth Warsaw so anything that you guys have seen online Twitter that's all coming from me that this guy uh lots of lots of hours of work go into setting something up like this as I'm sure all of you know and and um it's uh we're all we're really happy that you're here I was just having a a talk with one of the other Founders um about the uh the the turnout we're we're sitting at like over a thousand people that are going to come through this venue over the next like 4 days so really really awesome in a bare Market to just hear those kinds of numbers we had no idea that it was going to turn out as much as it did so thank you guys for being here also I think it's really awesome how there is like this is the only cool uh this is the only cool uh room in like the entire uh there's there's air conditioning here it's like it's a sauna everywhere so you guys have like the hack um all right let me kick it off so you guys are here uh we're I'm going to be talking about nfts meeting real world asset use cases um excuse me I needed to delete that it's actually just real world use cases um so about me I told you uh that I'm the social media manager here um I'm part of the core team at eth Warsaw um as well as uh the forge defi which is a nft gated defi real estate platform um as and a crypto tax firm so I do social media for uh us-based customers that need help with their crypto taxes um my path in crypto I've been working in crypto for about two and a half years now um started off as an investor then started working for bondle which was an nft Millhouse I pretty much took the account from 20,000 followers to 60,000 follow followers uh we had about 5 million in nft sales and about in the 6 months that I worked there uh I did uh sales for uh Tori Lanes Logan Paul Luis kapali those are kind of just like famous projects that we worked on while I was there um trui uh those of you don't that know trui don't know trui is uh one of the uh OG sponsors from last year they kind of broke off in are Arch block now I see some faces here that uh what's up man that uh still work there um I was part of the marketing team took the account from 20,000 to 87,000 Twitter followers uh 3,000 Discord members to 25,000 and we've also hosted throughout the year last year had about 5,000 people show up at our in-person events so that's kind of my journey um so real world use cases um I am going to talk about three main topics during this 30 minute talk about nfts and how they uh I think a new narrative needs to be brought out um we're going to be talking about broadening adoption Revenue gen generating business models and bringing asset ownership to the holders um so these three uh topics at minimum is what I want you guys to walk away with from this conversation I think they are what we need to as an industry and what I'm working on to um adapt and develop into the into the main or into the into the industry in order to kind of like bring nfts and crypto to the next level so here is the nfts the good right so during the bull market everything was great snazzy nfts were the hot thing Logan Paul you know he has a good and also a bad side to his story he sold a bunch of uh nft Pokemon digital assets or digital Collectibles and um in I think like both of these sold out in about like 90 seconds cuz back then there was so much liquidity in the market all you needed to do is just launch the project have the paperwork signed with your client and you can sell out nfts it was ridiculous I think that now looking back on it it's kind of like what the hell were we thinking but in my opinion when the bear is here and everyone has cash to throw around like stuff like this can happen Tor Lanes in in on one hand uh you know he's in jail right now because he shot someone in the foot but like he he did a really good job because he took himself as a an independent artist and sold nfts for $1 a pop and ended up selling over a million uh albums for a dollar online and so he pulled in a million bucks in um uh in liquidity or uh in volume over a 90 second period of time so he did a great job independently selling you know with using our team selling his uh selling his nfts so this is the shitty part about nfts so like you know why is the price [ __ ] itself everyone talks about the floor like how you know is this a new measure of success like we all saw this was a real scam right so like you have folks that come in and as soon as any sort of fud starts to hit the community or any sort of uncertainty about what the [ __ ] is this project doing or where's the team going um this sort of stuff happens and in my opinion why does it happen I think it's because people you know fluff up what they promise they don't have actual use cases to their nfts you can say things are coming and that we're building and we're figuring things out until um that doesn't work and then things like this happened so let me look uh just looking for my water really quick but nft metrics like if you look on the left side of this chart this is uh all the way back in 2017 when nfts were created thanks rafo and um liquidity was low volume was very low go all the way to 2021 June summer defi everything popped we went up to like from like no Jin qu to like from no purchases to um yielding um Millions uh hundreds of millions of dollars a month eventually we bumped up to like 1.2 billion a month um then in 2022 [ __ ] dropped and [ __ ] did not look good um that which is kind of like where we went to over here this statistic is literally absurd um we all know nfts tend to Trend to zero over time um but the fact that since September 2021 um nft uh sales have dropped by 92% um goes to show you that this is kind of like the shitcoin market but even worse it's like they they're just like the shitcoins of shitcoins so um there's just no liquidity in the market anymore people are literally holding jpegs right now so sorry sucks to suck but that's what happens when you don't have a road map or like a future planned out for your um project so um yeah the the the high spikes over there on that second graphic is like that you know1 Mil billion dollars that I was talking about and eventually it Trends down this graphic right here talks about from January of this year all the way to August right before August downward Trend as well so it's like you can kind of see it's like a 90% drop in volume as well by the way who here owns nfts does anyone did anyone like buy nfts at any point like did anyone trade nfts so do you guys in the back maybe like shout out what you own if you don't want to if you're like cool to share like d is it like you know monkeys did you buy giraffes like I'm kidding you don't have to share what you uh but you know we've all we've all dabbled it seems like a good majority of us at least have dabbled in some sort of nft um you know trading or purchasing so the I think the biggest thing here to to ask ourselves is like how did we get here right and through these four points you know false promises rugs it goes back to what I was saying earlier it's like Founders used to promise you the world but they would deliver on literally nothing and so over you know 6 month to 9 Monon period of time you you say that you're going to build like the next generation of web 3 nfts and all the and like all you can do is the best you can do is a Shopify store like people are going to like floor the nft at that point so um from seeing that happen time and time again uh and getting rugged over and over again the community ended up getting very very um uh burnt out from that so false promises unrealistic Road road maps um influencer hype marketing is a very tough subject to talk about because not only will the influencers push their agenda on you to get you to buy the nft they'll also use you as exit liquidity a lot of people I don't think talk about this and I think that this needs to be spoken about in the industry because it's very scammy um it's it's not uh that morally I wouldn't be able to do something like that I think it's very uh you're literally stealing like your followers money and they are the ones that are supporting you to become the person that you have become on Twitter this is all like that that that's kind of what I'm getting at is uh uh influencers on Twitter um and then you know the the problem with that culture is that they then focus on the people that are trying to call them out publicly and shame them because they have a bigger following and then those folks end up getting rugged because they're trying they get gasit into thinking that they did something wrong um so number four uh I I don't know if you guys are any degens in here I I will you know proudly say like I fall into this kind of trap sometimes but like yeah uh culture of excess gambling I think there's a lot of herd mentality stuff that happens in the uh in the crypto world and this is something that uh I think we should change change moving forward uh this also you know how did we get here I'm sorry doesn't cut it anymore like um this I made in mid Journey uh by the way like all the graphics that you guys see in here this whole P PowerPoint slideshow I'm a huge AI guy um Advocate I made this in mid Journey all this whole slideshow and all the graphics that are in here was also made in mid Jour or with AI so uh ma the meatloaf this I literally put on Twitter like right before uh SPF got put into jail for watching a football game where he wasn't supposed to um and here's uh Bitcoin Barbie after we fixed this whole mess that we're in right so I think that we are in a place right now where there's a new opportunity emerging in front of us and I uh encourage everyone here and listening later on to to to kind of take this and and try to run with it um I think that in this time we we need to rebuild trust in the community and then after a proven track record of results um and by proven track record of results I mean like more projects need to come out that are actually delivering on real world use cases that aren't [ __ ] up and like um bringing back uh trust to everyone that's kind of been burnt out by all these rugs um eventually we'll we'll have liquidity flow back into the nft market um so here are those three topics I'll just like briefly brush over them actually we're doing okay on time um pudgy Penguins does anyone know the pudy Penguins in here they're an nft collection on ethereum so I'm a huge fan of the pudgy penguins I just got one the other day these guys are doing something really really cool and really Innovative they are um if you they they are a collection of pudgy Penguins and the real world use case application that they have is that they just started selling plush Penguins on Amazon um in uh on the next slide I'll get into that but essentially this the stuffed toys you can scan a QR code and you become and you enter this pudgy World which is like a 3D metaverse where your animal can walk around um and you know you end up scanning the QR code and you end up owning a digital collectible without even knowing that you are an nft holder on the back end so this is an example I think of companies using the technology but not focusing on the technology this is what I always talk about the plumbing there is no Plumbing in uh in like things like defi right now because everything is very rickety and brand new so it's not like you go on revolute switch your USD to Euro um with the click of a button in default we all need to do those steps individually in order to execute the function here they're doing that exact thing with uh toys so not only is it inspiring younger generations to get crypto curious um it's also uh leaning into Mass adoption I think that's a very awesome awesome thing vriends is very similar does anyone here know Toys R Us or Macy's um I'm sure everyone in here hopefully knows Macy's not because I'm American but it's because like it's a very big uh uh known uh company but uh vriends does kind of the same thing they're they teamed up with Macy's and Toys R Us um it's ran by Gary vaynerchuk which is like a big marketing guy based out of New York City I'm sure a lot of people you consume his content because he's like an OG but they do a collaboration with Toys R R Us and Macy's so same exact thing they're like you know accountable alligator or whatever is like the name of the toy and so you scan a QR code it teaches you about the alligator and about uh crypto so um super awesome awesome thing pudgy Penguins sold out 20,000 stuffed of these pudgy toys that I was just talking about in 48 hours when they launched on Amazon they sold $500,000 of stuffed toys in 48 hours making them a number one Amazon Seller I think that's an incredible thing um this is just an example of like one company that has real world use cases as well as vriends um vriends just launched back uh last Christmas season so they're probably going to start like reporting numbers um at the end of next year um but well for some reason it didn't finish but uh the Toys R Us and Macy's collaboration they estimate that over $1 billion dollars of Revenue are going to come in from um this this sort of collaboration so excuse me Revenue generating business models brening adoption now the third uh Point here is bringing asset ownership to the owner asset ownership to the holder excuse me there's supposed to be a picture here and I'm not sure why it's there but it's supposed to be Avatar in a really really big place on ovium so just imagine a video game but um the game alium does anyone know alium in here all right [ __ ] yo you guys in the back like know your [ __ ] this is sick uh what about you guys know alium anyone else so Lum is a web 3 nft uh game um uh created by uh Ultra engine so does anyone know Ultra engine in here I guess like if there's a bunch of devs maybe Ultra okay so no all right so Ultra engine is the uh gaming kind of like framework that uh is uh used by a lot of games out there but alivium chose to create their game on Unreal Engine and so you get these kind of really really beautiful animals and and Graphics uh that are like super high detail very ultra realistic um in alium you can go and buy these animals these alvatar as they're called um and you and you can uh trade them in like a trading card game you uh in in the real world game it's like a you you fight with these Al vitar and you and you harvest them um there's also like all these uh elements that you can collect but anyway the user owns all of these assets so let's say I have a really rare Al alvatar or a really rare Avatar um you can go and trade these on the marketplace if you're let's say you want to get out of the game ecosystem or you need um you you're ready to move on because like you beat the game like you can just sell this get your liquidity back and then um you no longer obviously have the the flex of of having an expensive rare nft but um these are just kind of like the use cases of that same thing with star Atlas so this is on I'm realizing right now this doesn't apply but this is on salana um so salana is doing they're doing the same thing star Atlas is using Unreal Engine they're just on salana but I just wanted to throw this in because it's a very very useful uh example same thing like like down here you can buy this car if you get a bunch of money and you're a whale in the game you can whale out with the ships that they have and fly around the universe star Atlas is kind of like a universe based um game where you're in a galaxy as like one of these astronauts so the cool thing about these nfts again is uh Dow Focus so you have a choice in your game's Future these mechs is something that they recently installed into the game where you can literally buy one of those mechs and fly around the world as a as a Mech guy um so I think I'm good with that so this is what I'm building the forge defi so going back to these kind of core elements that I was talking about through this entire presentation the industry needs a new wave of innovation we are the future forg in blockchain so what the the tldr here is that this is an nft gated D5 real estate Pro protocol what it's going to look like is that you buy yourself the nft nft gives you grants you access and owner uh grants you access into the into the protocol which then gives you the opportunity to um to have uh exposure to these real estate uh opportunities um the interesting thing how did I get involved in this is that through the sappy seal nft Community which is another ethereum based nft collection I met some I met a a couple of guys the founder of this project um has 15 years of experience in real estate with a verifiable track record he does private private Equity rounds um in in the US and you know our goal he's kind of he's he keeps saying he's sick of talking to the country club folks he's sick of talking to people that are you know buttoned up 100,000 plus uh um you know Buy in accredited investors he wants to democratize we keep saying we want to democratize uh opportunity for everyone and allow people to put their money into this kind of portfolio get exposure to this and um have even distributed uh Revenue model uh to to people so there's the there's the Wall Street approach as as you guys know it's like doesn't trickle down at all like we're trying to level that out so the way that we're doing this is we're kind of combining the best of three worlds um I'm sure a lot of you as you start to navigate your way through this conference you'll learn about defi you'll learn about account abstraction you'll learn about um real world assets is a big thing people are talking about um privacy is also a big thing folks are talking about at this conference um we're trying to combine the best of these three worlds so that the result will be greater greater than the sum of its parts so through nfts through people showing us that they have proof of passion proof of of uh work and uh proof of stake is what we're calling these three tiers um they they'll be able to have access into this D5 protocol which will then have Expos to real world asset um offchain so concluding and final thoughts um my purpose here for you guys to walk away with is with nfts and real world uh use cases you're going we're going to be able to broaden adoption start introducing uh uh Revenue generating business Mo models um and bringing asset ownership to the holder um another really good one before I wrap this up um this is actually quite fun funny but one of the people that we're in touch with uh bought a bunch of land in I think Ecuador and they're starting up a chicken farm so if you have the nft you have access to not only the eggs that they're selling but also uh the revenue that is uh created from the eggs and the chicken farm so really really Innovative I'll leave it I I'll call it that uh funky but uh very very awesome way to um kind of bridge this gap between the real world and and mass adoption of crypto so um I'm here if you guys want to connect talk about marketing talk about Community Building um we're looking for a few devs if there's any like ambitious devs that want to start working at a defi protocol um that you know H are interested in creating complex uh de fry structures uh definitely come find me after this I'd love to talk to you um that's my Telegram and that's my sappy seal I love it I'm on Twitter with that sap you seal if you guys want to get in touch with me I'm on Twitter Discord and telegram all the same name crypto Ma and I'll stop it right here got five minutes if there's any uh questions but thank you guys given that real world assets seem revolutionary and and I found my water bottle was in my pocket this whole time sick if you apply uh the concept of a rwa to the call of Def it seems very revolutionary but I'm seem very skeptical about uh any project that does rwi as a good investment vehicle meaning how does the value for the invested conjure in comparison to other crypto projects which promise extraordinary returns but I just don't see any returns in a uh company or project that does rvas because rvas by their very nature don't convey great speculative value as I [ __ ] does I'm trying to think of so the the best way to kind of approach your question um I'm hearing you want like people are going to want their money back or their investment investment so uh if I invest in shitcoins I expect either time 10 Returns or nothing yeah uh how does that actually happens in the AWA project yeah so what we're trying to do is um build trust with folks to say like hey the you're going to put your money in this protocol and you're going to get stable returns over years like this isn't a thing where you know you you put a a grand into a shitcoin and hope that by the next pull run it's going to 100x this is um and there's tiers to this we're going to build like tranching systems so if you want like higher exposure medium exposure low exposure to risk um each one of these will have their own uh range of percentage return on it um but the uh the founder has a web2 business with uh like I said that proven track record where year-over-year he generates about like 9 to 15% Roi in his uh in his Investment Portfolio regular company sorry much more like a regular company than a typical crypto company so can you repeat that much more similar to a regular company than a typical crypto company exactly yeah yeah so this is we're trying to build something here that is not like this yeah not like a crypto company and we're just bridging his real world asset or his real world real estate business on chain thank you great thanks anyone else that was a good question by the way yeah thank you for the talk so my question could be what is the main difference between uh real estate nfts and tokenization of real estate for for example fractional ownership yeah so I was actually going to answer that like fractional ownership I know that there are uh projects and opportunities out there that offer fractionalized ownership of nfts and what does that mean it's like you buy into the nft and it gives you a slice of that particular uh real estate model so yeah go go ahead kind of allows the same use cases right well that's different than what we're building what we're building is more like you put your money into a pool that pool then lends out money into an offchain or like a real world asset uh real estate portfolio and then as those uh dividends come or the the revenue that's generated comes back that money comes back into the pool and then gets distributed to the people that um you know put their money into it originally cool thanks no problem man we got a question up front here by the way thank you everyone that's stuck around I know it's 6:30 and everyone's excited for the a zero party I appreciate you guys sitting here and hanging out uh okay so my question is uh once again about uh real estates isn't uh real estate in Investment Trust already uh democratizing the market it is liquid fible asset and it distributes uh dividends back to people so how web free is helping to democratize real estates I love I love that you just asked that um and my my immediate my immediate response in my brain is that is for REITs are for people that are participating in the stock market right and for people that are are in your traditional web 2 model like people in crypto that have crypto don't want to liquidate to then put back into Fiat you have to pay taxes you have to do all this other stuff right get an offramp uh potentially kyc so like people that want to stay within the web 3 crypto ecosystem can use these funds if you're an average crypto user let's say some of the devs here and you want to throw in you have a couple thousand that you want to throw in somewhere that will give you sustainable yields over a long period of time that's what this is um if you have Fiat then you can go and and invest in the Reit uh okay I understand it but uh anyway you are not going uh back from kyc if you want uh to have a broad market and uh more Capital flowing in I'm not following uh kyc you need anyway to be legal and to go for uh many users and adoptation and so on so it's not going uh away so what's not going away the kyc process yeah yeah so the kyc process will be will be part of of the uh of the protocol um but I don't I don't really know how to answer your question Beyond uh what I what I just proposed um yeah oh okay thank you yeah no this good good uh Insight thanks for asking that awesome um so thank you very much Matt and uh everyone oh one more one more question yeah so uh how can you guarantee that uh the money generated by uh the revenue generated by the asset uh come to back to the pool like uh yeah yeah I mean I you you obviously can't guarantee anything but the thing that that that that we're trying to build here the trust that we're trying to build is that my the founder um with that 15 years you know he is at a certain point in our growth uh trajectory on uh online that we're trying to do with the cultivation of this community um will you know inevitably dox himself and show his real web 2 company and as well as like uh you know uh portfolio like returns and uh examples of what what he's done in the past yeah cool cool thanks no problem okay so uh thank you very much Matt and uh let's uh thank Matt as well for the great presentation yeah thanks guys thank you