Hi. It's Dana. Welcome to the Web 2.5 newsletter covering how Web 3.0 is shaping the real world. 

This week, I'm thinking a lot about 'scarcity.' I attended a panel about the metaverse where a commercial real estate developer raised her hand and asked a straightforward, exasperated question: How do you make money in the metaverse? The panel tried to answer her question but didn't. She re-asked it. Still, no one gave a clear answer.

I went up to her the event after and told her my point of view – that you make money in the metaverse the same way you do in the real world – scarcity. You have something scarce that people want to buy. Your time. Your land. Your goods. Your expertise. It’s simple supply and demand.

But what’s interesting is that scarcity is a very anti-Web3 idea. A lot of the promise of Web3 is about abundance. For example, real estate spaces can be infinite, in theory, in virtual worlds. NFT collections are about democratizing access to experiences that aren’t possible at scale IRL.

But that's only one half of the coin. The other half is that supply and demand mechanics still have to hold. How do I know? Well, the week's big story was from Porsche, who flopped on an NFT launch by offering too many NFTs at too high a price. The point of the collection was to make something highly inaccessible – a luxury sports car experience – available to all. But to sell the NFT, you still must get the supply and demand mechanics right.

This push-pull between abundant access made possible by Web3, and the age-old dynamics that people still want what they can't have, is very Web 2.5. It's a healthy tension to balance, not one or the other. You'll see both at play consistently as you read the Web 2.5 news weekly.

I believe the best projects and communities must execute on BOTH abundance and scarcity well to win hearts, minds, and wallets. And unfortunately, for big brands like Porsche, sometimes you just don't get it right on the first go.

And now, on to this week in Web 2.5.

📰 Web 2.5 Roundup 📰

🚘 Cars

Porsche's attempt to sell $11 million in NFTs had a bumpy ride this week with an NFT launch gone awry. The company went to market with 7,500 NFTs offered at .911 ETH ($1,475), a price aimed to celebrate the collection's iconic 911 sports car. But with the high price point and uninspiring artwork, sales stalled, and the company had to cut off supply and issue a public mea culpa. Here's a pretty good summary below (FP = floor price). Oh, and here's an interesting thread on the T&Cs, too.

🐕 Who Let the Dogs Out

Pedigree, the Mars-owned pet care brand, has launched a new Fosterverse program, enabling real-life rescue dogs to be fostered virtually in the metaverse. Landowners on Decentraland who list their dogs in the Adopt a Pet registry database can upload a 3D avatar of their dog into the virtual experience, allowing users to interact with the dogs and learn about their adoption status. The move is intended to drive greater pet adoptions, a social good initiative from the CPG brand. 

Neopets, the OG virtual pet website, is raising $4 million to bring itself into the metaverse. Initially launched in 1999, Neopets hopes their 150+ million fans worldwide will want to raise their digital pets in today's new web3 world. And according to my math, those 23-year-old digital pets are now only three dog years old. So, they should still be good to hang!

🥦 🛑 Not Whole 30 

Oreo is celebrating the release of a new limited-edition cookie, dubbed "The Most Oreo Oreo," with a metaverse activation and collaboration with celebrity chef Martha Stewart. The experience occurs in Meta's Horizon Worlds, where users can play mini-games to win prizes. Note: This newsletter headline has to do with a different Martha, but as a Minnesotan, it got stuck in my mind. Also, kudos to the Oreos marketing team who got the legal team to sign off on these claims in the PR release: "Most Playful Cookie Ever Twists Open The Most Playful World Ever." 

🚽 Potty Party

NieuxCo, the New Orleans-based Web3 venture studio, is launching a new AI-generated digital collectibles Mardi Gras-themed NFT collection (that's a mouthful even after I finished the Oreos). Perks of the NFTs, which grant access during the IRL festival, include food and drink, access to special events, private parties, exclusive performances, AND restroom access along the parade route (which turned out to be very controversial on social media). 

🎸 Music & Culture

Woodstock is bringing its storied music festival to the metaverse, tapping the blockchain-based production company Sequin AR for the gig (Sequin was behind Mariah Carey’s Magical Christmas Special on Apple TV, the Macy’s Thanksgiving Day Parade for NBC, and Madonna & Maluma’s BMA performance). 

💄 Fashion & Beauty

NYX, the L'Oréal-owned makeup brand, is launching a beauty creator DAO and NFT collection to foster "the development of the 3D artist community and its evolving approach to makeup in the metaverse." The beauty DAO is called GORJS (pronounced gorgeous), and access is granted through NFTs called FKWME Passes (which is pronounced precisely as you thought it shouldn't be but might be).

Nike opened up its .SWOOSH Studio this week, the home for its virtual co-creation efforts. According to an Instagram post, the first co-collaboration program will be the 'Your Force 1' challenge, allowing the community to submit concepts for a new Air Force 1 shoe. 

📺 Media 

ZEBEDEE, a mobile payment company, partnered with the “listen-to-earn” podcast platform Fountain to enable podcasters to reward their listeners with Bitcoin. Should we do this for Web 2.5?

David Bianchi, the actor and filmmaker, is launching a Web3-powered TV series called RZR. Bringing both Web3 technology and a Web3 ethos to the project, Bianchi held an open 'table read' this week, allowing the general public to participate in what's typically a closed-door script-reading session. 

🤝 All the Deals, All the Feels

MoonPay, the crypto payments company, purchased a Web3-focused creative agency, Nightshift, to build a one-stop shop for brands looking to enter Web3.

Floor, the NFT app that enables collectors to view and track their holdings, has acquired WGMI.io, an analytics tool specializing in market activity and trading data.

Doodles has agreed to acquire the award-winning animation studio Golden Wolf, known for its work with Rick & Morty and Disney. GW's Founder, Ingi Erlingsson, will be joining Doodles as Chief Content Officer, continuing to oversee GW operations while also "building the Doodles design and animation studio, which will focus on taking the brand to the next level through long form content, gaming, IRL experiences and more."

💵  Finance Things

Robinhood is getting deeper into the wallet game, rolling out its new software wallet to 1 million users. A competitor to leading wallet products like MetaMask's wallet, the Robinhood Wallet allows users to swap and transfer crypto and view owned NFTs and crypto.

🔢 By The Numbers

Are NFTs Back? OpenSea sales rise in consecutive months for the first time in a year.

Congress, we have a problem. More than one in three of the 535 senators and representatives in the U.S. Congress received campaign support from a senior exec at FTX.

Kevin Rose, the Co-Founder & CEO of Proof (creators of Moonbirds), appears to have lost $1 million+ worth of NFTs via a wallet hack.

Crypto is now the second most widely held asset by female retail investors, after cash and ahead of stocks, according to a new survey from investing platform eToro.

🦧 Degen Corner

Doodles announced its long-awaited NFT project, Doodles 2, this week. The new project is a Flow blockchain-based dynamic NFT comprised of two parts. First, anyone can mint a base-level Doodle, described by Founder Jordan Castro as a mannequin, of sorts. On top of that, holders can purchase wearables meant to be changed into endless combinations. The collection is another move by Doodles to bring its brand to a more mainstream consumer.

🤓 Weekend Reading

How AI and Web3 Marketing Will Compete for Ad Dollars. AdAge.

The Unknown Hedge Fund That Got $400 Million From Sam Bankman-Fried. NYTimes.

How Jack Butcher’s Checks Challenges the Way People View NFTs. nft now.

🌶 Hot Takes

ChatGPT is 'Not Particularly Innovative,' and 'Nothing Revolutionary,' Says Meta's Chief AI Scientist. ZDNET.

JPMorgan CEO Jamie Dimon: Bitcoin is a 'hyped-up fraud.'

🔍 Trademarks Don't Lie

💼 Job Market

Stephanie Simon, the former Clubhouse exec, joins FARFETCH Group as Vice President. Community and Web3.

Gemini, the beleaguered crypto exchange, is laying off 10% of workforce in its latest round of cuts (there have been at least 3 this year).

Microsoft layoffs reportedly hit key VR and metaverse teams.

Editor, nft now. Apply.

☠️ And finally...

Spending my weekend using AI to try to get an Oscar.

🫶 And that’s a wrap! Thanks for reading Web 2.5. See you out there in the interweb3s. 

🎙 Web 2.5 Season 1 Podcast Recap 🎙 

And in the meantime, don't forget to check out any episodes you missed from Season 1 of our podcast:

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DISCLAIMER: This content is strictly educational. None of this is financial, tax, or investment advice — and not a solicitation to buy or sell any assets or to make any financial decisions. Please always do your own research. For important disclosures, see www.web2point5.io/disclosures.