Patreon is currently evaluating ways to reward content creators using cryptocurrencies as well as non-fungible tokens (NFTs). Jack Conte, the CEO and co-founder of Patreon, as well as the company's Chief Product Officer Julian Gutman, elaborated on their interest in the crypto space while speaking at the The Information's 2021 Creator Economy Summit on November 7. The company based out of San Francisco, US, provides a platform for people to reward their favourite content creators with donations and presents.
“There's clearly enormous innovation happening in the crypto and NFT space. It's unclear if that is sustainable across the entire creator economy, but there's some fundamental technological components to NFTs as a way to sell value to your audience and sort of continue to gain value from that from secondary sales,” Gutman said during the event. NFTs are virtual collectibles that can be bought using cryptocurrencies.
The CEO further said that he believes that NFTs can pave a long time earnings path for content creators.
Like Walmart and AMC Theatres, Patreon has also seemingly decided to take a ride on the cryptocurrency wagon.
For now, the company is contemplating the launch of a digital token – Patreon has now allowed creators on its platform to provide tokens or creator cash, as a membership benefit for patrons.
“We're right now not talking about creating any type of initial coin offering, which is specifically not allowed under Patreon's current guidelines,” Laurent Crenshaw, Head of Policy, Patreon had said earlier this year. "But we've heard from a number of creators who have been interested in the opportunity to offer exclusive memberships and benefits to their patrons through a coin or token, a digital item that they can hold onto that shows that they are part of your fan club. We could explore the opportunity of making that type of offering allowable under our guidelines."
The company is considering to allow creators issue their individual coins – each token locked with a fixed value, that could be bought by their followers.
BitClout, Roll and Rally are among other companies that are working on such “creator coins” to allow followers to financially support content creators.
The creator coins could also benefit the followers, especially if the artist they have purchased the coin of becomes an overnight success, making those coins more valuable.
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