Minority communities have historically been left out of recent blossoming industries like marijuana. Many are now keen to be part of this latest economic shift to cryptocurrency. According to two surveys conducted by Harris Poll and provided to USA Today, 23% percent of African-Americans own cryptocurrency, compared to 11% of white Americans and 17% Hispanics.
Brandon Buchanan, founder, and managing partner of Meta4 Capital, a crypto-focused investment management firm, bought a Bored Ape NFT with gold fur for $3.4 million.
Buchanan welcomes the large buy-in from Black culture, he sees Web3 as the future, led by those who have been outside looking in.
“Black people, in particular, are very connected to culture,” Buchanan told Yahoo Finance. “If you think about the internet and you think about memes, all you have to do is check the vernacular. Check what’s happening in culture and music and certainly, Black folks are on the front foot of that.”
The narrative on NFTs is shifting. Whereas there was a financial gap in resources to participate in new economies African -Americans and minorities are now broadly interested in getting involved in the space. Buchanan plans to strengthen Meta4 Capital into a top-tier Web3/metaverse focused fund by acquiring rare NFT pieces that will pay out dividends. His company has already invested tens of millions into highly sought-after NFTs from rare digital avatars like Cyberkongz and CrypToadz, and has acquired several plots of land in varying metaverses.
New industries and new jobs will sprout from the Web2 to Web3 movement. Decentralization will benefit the broader economy. Education now is at the forefront since the infrastructure is already being built. The buy-in is real. Swan Galleries, the only major auction house to have a dedicated department for African American art reported more than $6.5 million in revenue from Black artists alone in 2020. The potential for earnings is high in this fast-growing industry. Black collectors, artists, and enthusiasts are eager to learn more about how to enter this niche market.
Herman Marigny, founder, and CEO of ONE/OFF gallery and creator of the Black Arts District told Insider magazine there is “an opportunity to leverage blockchain and NFTs to create an intentional intervention against the systemically racist practices of traditional and digital redlining.”
The fact that NFTs provide a public record of ownership and makes the challenge of proving authenticity almost non-existent lowers barriers to entry for artists. Digital currency provides protection of intellectual property and reduces costs incurred by middlemen. Galleries traditionally take 30%-50% of sales from artists. NFT platforms take about an average of 10% or less and reach a more global audience.