Meta’s Outrageous NFT Cut & Birkins For Boys 👜
The company will take half of virtual asset sales, and men go all in on Birkins
Cultured is a newsletter that gets readers up to speed on the most interesting things going on at the intersection of finance, art, collectibles, NFTs, and more. Cultured is produced by Otis, an alternative investment platform that was recently acquired by Public.com.
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🗞 STORIES OF THE DAY
Meta will take half of virtual asset sales in its metaverse
Meta recently announced new details about Horizon Worlds, the company’s metaverse application. Those include plans to take 47.5% of all virtual asset sales on the platform (including NFTs). Creators are understandably enraged.
That cut includes a 30% “hardware platform fee” for transactions made in its Quest Store, as well as a 17.5% fee levied by Horizon Worlds (which is also operated by Facebook).
Meta thinks its rate is “pretty competitive,” but it’s significantly higher than other platforms. OpenSea’s fee is 2.5% and LooksRare charges just 2% on its transactions. It’s also higher than the (already outrageous) 30% charged by Apple’s App Store.
Our Take: Meta’s massive fees could halt its plans to dominate the metaverse.
Meta is relying on its size, and the fact that Horizon Worlds is free, to lure creators onto the platform and pay its massive fees. However, its service isn’t actually that popular. Only around 300,000 people actively use Horizon Worlds, compared to more than 1.5 million on OpenSea. Creators are unlikely to ditch the lower rates and larger user base on marketplaces like OpenSea based on the Meta brand alone.
Here’s why men are going all-in on Birkin bags
Hermes’s iconic Birkin bag has long been coveted by female handbag aficionados. Now men are getting in on the trend, with luxury sites reporting a massive uptick in interest from their male audiences.
The trend started with celebs like Floyd Mayweather and Travis Scott toting around the bags. According to the RealReal, searches for different versions of the handbags were up 200-300% in the second half of 2021.
Male shoppers tend to prefer the larger sizes of the bag and the darker colors. Hermes also debuted a new zipper-pocket Birkin during its last runway show, a sign that the brand is keen to capture its new bro audience.
Our Take: Birkins are exclusive by design, making them highly appealing to collectors.
Like NFTs or rare baseball cards, there are only a certain number of Birkin bags created every year. Buying one from Hermes isn’t easy, either. You have to spend a certain amount (rumored to be $10,000) before the fashion company even thinks about offering you a bag. That’s made them highly desirable for collectors who are into that sort of thing. It’s also made them an excellent investment, attracting returns-focused collectors.
✨ AROUND THE INTERNET
Who’s doing NFTs now? ESPN, Starbucks, and Snoop Dogg (Check out the full list of NFTs by celebs and big brands on Otis Mag).
Kurt Cobain’s Fender guitar from the Smells Like Teen Spirit music video is expected to fetch up to $800,000 at auction.
China is cracking down on stolen antiquities as part of a broader push against cultural-heritage crimes. So far, the country has recovered more than 50,000 items.
RareMint’s new asset-backed sports NFTs have taken off. The marketplace sold out of its Michael Jordan and Lou Gehrig memorabilia shortly after listing it.
A secret NFT drop led to a record-breaking Ether burn. Here’s why.
The nominees for the Turner Prize, one of the most prestigious art awards, has been announced. As always, it’s bound to generate controversy.
