Globally popular manga, popular IP and NFT

Japan is a content and IP powerhouse. In the manga and anime industry, which is a prime example of this, there are many businesses and services that utilize NFTs. Let's take another look at the possibilities and challenges of "manga/anime x Web 3.0."

Kamikawa: In recent years, there have been an increasing number of cases in which the manga and anime industry is using Web 3.0 technologies, including NFT. So, this time, let's talk about the possibilities of manga and animation x Web 3.0.

Takano: Sorry to jump right in, but what exactly do NFT and Web 3.0 mean? I've heard them a few times, but I still don't understand their exact definition.

Kamikawa: I think there are many people who feel the same way. They are terms that have only recently come into use, and their definitions can change depending on who uses them.

Let's start by explaining each term. NFT is called "non-fungible token" in Japanese, and is a technology that proves that digital data is unique.

To put it more simply, it is something that links something like a certificate of authenticity to specific digital data.

Takano: What is the use of that?

Kamikawa: First of all, digital data can be copied infinitely, right? Let's consider the case where I copy image data I have and send it to Takano's computer. If a third party were to appear later, they would be unable to distinguish whether the image I have or Takano's is the original, that is, the original image data.

I also have no way of proving that I was the original owner of the image. In the same way, the Internet is flooded with a huge amount of copied data.

In that case, it is no longer possible to know who is the owner or creator of the digital data.

In other words, it can be said that the concepts of "original", "owner" and "original" do not exist in the digital world.

NFT brings technology that can prove "uniqueness" to such a digital world, making it possible to treat it as if it were a physical object.

So, when asked what NFT is useful for, the answer is "it will enable many things that were not possible in the digital world until now." I will explain this with a concrete example later.

Takano: So, what is Web 3.0?

Kamikawa: To put it more simply, Web 3.0 refers to a new form of the Internet that is more decentralized and decentralized than the current Internet, using distributed technology based on blockchain technology.

But this is hard to understand, so to put it more simply, it is a term that refers to all technologies, services, and applications created using blockchain technology.

NFT is one of them, and cryptocurrencies such as Bitcoin are also a type of Web 3.0. However, NFT is the only one that is mainly used in the manga and anime industry.

NFT linked to physical objects

Takano: I see. There are many cases of NFT use by manga-related companies and IP. For example, Shueisha launched a project called "SHUEISHA MANGA-ART HERITAGE" with the vision of "making manga an art that should be passed down."

As the first step, we are selling a combination of letterpress prints of "ONE PIECE" and NFT.

Kamikawa: It is a project that combines physical art works with NFTs that prove their ownership.

Takano: This project seems to have been well received in terms of both reputation and sales, and since its launch in 2021, we have continued to sell NFTs of various IPs and artists other than "ONE PIECE".

Kamikawa: This case can be said to have realized the diversification of monetization methods by utilizing NFTs.

Manga illustrations have long been highly regarded around the world, and there are fans all over the world, so selling manga as physical art may have been possible even without NFTs.

However, in that case, the problem of so-called counterfeits would have always been a problem. It would also not have been easy to create a sales site for overseas fans and develop promotions.

However, by making it an NFT, it became possible to appeal to fans and investors not only in Japan but also around the world.

In addition, the illustrations sold come with an NFT tag sticker linked to the blockchain, so the owner can be confirmed at any time, which is a new point that has never been seen before.

It is a hot topic, can be sold to customers around the world, and there is no need to worry about counterfeits. It can be said to be a successful example of leveraging brand power while protecting the company's IP.

Takano: As a major publisher, Kodansha is also developing NFT conversion of manga IP. In 2021, they sold an NFT work of "Code: Nostra," a new series that started in Young Magazine.

Five copies of each of the 51 pages of the first chapter were sold. They sold out within 12 hours of going on sale, and have since sold each page of the second chapter.

▶︎An NFT work of the new Young Magazine series "Code: Nostra" sold in 2021. All 51 pages of the first chapter, 5 copies each, sold out in about 12 hours. About half of the people bought one copy of their favorite page, but there were also cases where people bought 30 pages at once.

By the way, it seems that the largest amount of transactions for this NFT was not in Japan but in the United States. In addition, it was announced that digital collective NFTs of "Attack on Titan" will be sold in the United States in 2022, and digital card NFTs of "FAIRY TAIL" will be sold in 2024, and there is a noticeable movement to turn popular IP into NFTs and expand overseas.

Kamikawa: This is an example of using NFTs as a means to deliver Japanese "manga" to the world. What Shueisha and Kodansha have in common is that both are moves to further spread works that have already established solid IP and expand the means of monetization as a business.

The term "Cool Japan" has been around for a long time, but the "global expansion of manga culture" is a long-cherished wish of Japan.

It is wonderful that NFTs are being used to help achieve this.

Takano: Do ​​illustrations and NFTs go well together?

Kamikawa: The reason NFT technology spread in the first place is because it was combined with art works, which sparked a speculative boom.

Then, generative art, which is an NFT version of a digital image that is automatically generated by combining several parts, also became popular. At the time, there were even NFTs that were sold for over 2 billion yen each.

Takano: That's amazing. If you think about physical paintings, they wouldn't go for that price unless they were works by a famous historical artist.

Kamikawa: However, many of the NFTs that were traded at such high prices were not works by famous artists.

On the contrary, they were created using a technique called generative art, which simply automatically combines pre-created parts such as eyes, mouths, and hairstyles.

Usually, when an illustration or art has a price, it's because the work is exceptionally good or the artist has great name value.

However, generative art NFTs don't fit either of these categories. The illustrations themselves are of the same quality that you could find anywhere on the internet, and there is no one who could even be called an artist.

But at the time, works sold one after another simply because they were generative art NFTs. However, this boom didn't last, and most NFTs have since crashed.

A world-famous manga turned into an NFT for global expansion

Takano: In comparison, a single panel or character illustration from a popular manga is clearly valuable.

Kamikawa: That's right. During the initial NFT boom, high-value transactions were concluded one after another just because it was an NFT. In fact, the terms and technologies of Web 3.0 and NFT have spread like buzzwords, and it is known that they have speculative appeal.

Therefore, just the fact that it is an NFT creates a certain demand and is a hot topic. If popular IP works owned by Japanese publishers can be placed on it, it will solve the problem that "NFT art is not considered to have any fundamental value or value in the illustrations themselves."

On top of that, just by using the technology called NFT, it can gain a certain amount of buzz and attract global attention. Moreover, it also solves the problem of the difficulty of controlling IP.

In that sense, the efforts of Shueisha and Kodansha can be said to be a straightforward approach as an example of the use of NFT.

However, only manga that have already gained a popularity that can be said to be worldwide can take such an approach. NFTs of such popular titles are certainly selling well, and in fact, sales lotteries and other events are flooding in with fans from all over the world.

However, only a handful of works can produce such results.

Takano: Indeed, in addition to the ones I mentioned earlier, there have been many cases where manga illustrations have been turned into NFTs. Have they not been successful?

Kamikawa: It is difficult to say what constitutes success, but looking at the open data, there are many manga NFTs that have not sold well.

In fact, even if an announcement is made such as "XX has been turned into an NFT!" and it is on sale, there are many cases where there are almost no bids or no transactions at all.

In addition, there are many cases where an attempt was made to sell an NFT once, but there are no follow-up reports, probably because it did not sell well.

Takano: Why did it not work out?

Kamikawa: One reason is that the enthusiasm for investing in NFTs has cooled. Around 2022, many illustration NFTs soared in price and became a boom, but now many of them have plummeted.

Naturally, the boom at that time was born almost entirely from speculative reasons, so if the idea of ​​"lose money" from it spreads, the boom will come to an end.

Secondly, there is the problem that NFTs are not yet widely known to many people. In fact, many people are skeptical when they hear the term NFT.

In fact, that may be the majority. Moreover, when actually trading, you may need to set up crypto assets and a wallet (an electronic wallet for handling crypto assets and NFTs), making it a high hurdle for beginners.

Furthermore, there is the problem that IPs other than very popular ones are not very attractive in the first place. In particular, since NFTs are sold globally, the reality may be that IPs other than those whose popularity has spread overseas will not be looked at.

Takano: In other words, only super popular IPs can realistically be used in the combination of manga and NFTs.

Kamikawa: That's true for now. However, as I mentioned earlier, NFTs are a technology that brings in a new concept that has never existed in the digital world before, so no one knows yet what the right answer is.

Turning illustrations from popular manga into NFTs and selling them was probably the easiest example to imagine and understand for buyers.

We can expect to see new methods emerge one after another in the future, and we are already seeing some unprecedented attempts.

NFTs can have crowdfunding-like properties

For example, we have been talking about attempts to turn existing popular IP into NFTs, but there are also projects that aim to turn IP from the world of NFTs. One of them is "Shinsei Galverse."

Takano: What kind of project is it?

Kamikawa: It is a collective NFT (an NFT series with multiple illustrations) created with a worldview and design reminiscent of Japanese Showa anime, and from the beginning it has set the goal of "anime production." And it seems that holders of this NFT can be involved in anime production.

Takano: The image is like a cross between anime production crowdfunding and NFT.

Kamikawa: Yes. However, anime production takes a huge amount of time and money, so it does not seem to be happening in reality at the moment.

That said, this collective NFT sold out immediately after its release in 2022, and at one point it was priced at nearly 10 times its initial selling price.

Another example is an anime series using characters from "CryptoNinja," another collective NFT series, which will air in 2023. The global NFT project "Azuki" has also announced the production of an anime using IP.

Takano: Why are NFT projects moving into anime?

Kamikawa: It's the opposite approach to turning manga and anime into NFTs. The idea is to sell NFTs first, and if they are well-received, turn them into "IP" and "brand" to further increase their value.

Selling NFTs also has an aspect of fundraising. It means that turning them into anime is an option as an answer to the question of what to do with the money after raising funds from investors.

Takano: So there is also a pattern where anime is chosen as the development destination for projects born as NFTs.

Kamikawa: The so-called digital illustration NFT boom has passed for now, but there are still some projects that are still popular. I think that some of these will continue to be turned into anime and manga in the future.

Takano: What other collaborations are there between anime and manga and NFTs?

Kamikawa: One notable one is the "Otaku Culture Studio" run by the domestic company A3, which is undertaking various collaborations with the goal of "bringing Japanese anime, manga, and game content to Web 3.0, aiming for a world where fans and creators can work together to promote these works."

▶︎Otaku Culture Studio sells NFTs in collaboration with various works. As the first step, they sold a limited NFT of the movie "Drifting Apartment Complex: A Message of Rain" released in 2022. The selling price was 0.04 ETH, and 1,111 units were sold out in just one hour.

They have collaborated with anime voice actors to sell NFT collections with original voices, and have sold collaborative NFTs with popular IPs such as "COBRA".

Takano: The original voices of voice actors are interesting! "Owning a unique voice as your own" seems like an attempt to tickle the hearts of anime fans.

Kamikawa: The project also sells collaborative NFTs with the movie "Drifting Apartment Complex: A Message of Rain" released in 2022.

It seems that 1,111 units of this one were sold out in just one hour. In this way, selling NFTs related to content can be a promotion, and of course it also leads to diversification of monetization methods as a business.

▶︎Otaku Culture Studio's "Project KOWANE" brings the uniquely Japanese voice actor culture to the world of Web 3.0. They've teamed up with famous voice actors to provide unique NFTs.

Takano: Another interesting example of manga x NFT is a service called "DeManga." It's a service similar to the manga apps that have been popular in recent years, but it works by allowing you to receive rewards by reading manga and supporting it. The rewards seem to be structured so that you can "use the rewards to develop characters and trade them as NFTs."

Kamikawa: It's a type of service that gamifies the act of reading manga. DeManga has also announced plans to "issue its own token," so it seems they will be using tokens in addition to NFTs.

▶The cycle of reading manga on DeManga and earning NFTs. Just by reading your favorite works and supporting them, like with a regular manga app, you can earn original character NFTs.

Takano: What is a token?

Kamikawa: It is a so-called cryptocurrency. Issuing a token means that the operating company creates the token itself and raises funds by selling it. It is a common practice in the industry known as Web 3.0.

Takano: Are there people who buy these tokens?

Kamikawa: Of course. Like NFTs, some people buy them for speculative purposes, but in most cases, token issuing companies announce in advance the benefits for holders and the use of the token. People who see this and feel that they want to buy tokens or that the value will increase in the future buy them.

DeManga has not announced anything about that yet, but I expect that users who have a certain number of tokens will be given benefits such as "a signed illustration by the author" or "a lot of voting rights to serialize their favorite works."

Regarding NFTs, they announced that "if you develop your own original character, you can show a lot of support (votes)," so by investing in NFTs or tokens, readers will be able to use DeManga more comfortably and participate in management decision-making, such as deciding which works to serialize.

Giving decision-making power to token or NFT holders in this way is not an uncommon use case in the Web 3.0 industry.

Takano: Some people are hesitant to use NFTs or tokens, but if you can get NFTs just by reading manga, it seems like it would be easy to get started.

Kamikawa: In this way, there are many other attempts using NFTs and tokens other than "making and selling digital illustration NFTs." Perhaps a future standard will emerge from these.

Takano: Aside from what we've introduced so far, is there anything else you can do with NFTs?

Kamikawa: One thing that is often said is the expansion of monetization methods by individuals. Earlier, we said that most NFT illustrations are not superior in terms of quality.

That's why high-quality ones tend to attract more attention than others. So, for a while, there were more and more cases of so-called illustrators and animators making and selling illustration NFTs. Some people actually made profits of hundreds of thousands or even millions of yen.

Takano: It's attractive that even people who haven't yet gained enough fame, such as animators and new manga artists, can make money if they have the skill.

Kamikawa: Another feature of NFTs is that they can give revenue to creators from secondary distribution. NFTs can be programmed in advance to give a certain percentage of the transaction amount to the creator each time a transaction is made.

In particular, when it comes to manga, the problem is that the creators don't receive any sales revenue when they are resold or sold secondhand.

Takano: There are some opinions that say that they would like to buy cheaply at secondhand shops if possible, but don't want the money to go back to the creators.

If the money is properly returned to the creators, it seems like they can buy with peace of mind.

Kamikawa: Another thing is that the culture of "supporting with money" is starting to take root in Web 3.0, including NFTs.

Until now, the most common way to support your favorite manga or author has been to buy the comic and tweet about it on social media, but in the future, buying NFTs may be another way to do so.

With NFTs, if you have 100 enthusiastic fans, you can sell special illustrations and other items to them.

Takano: I see. It seems like the culture of supporting creators is gradually spreading. By purchasing NFTs, you can support authors quite directly.

Somehow, it doesn't seem realistic for creators to do crowdfunding because they don't have enough funds, but I think it's reasonable to ask people to buy NFTs and support their activities.

Kamikawa: Anime, like manga, has a global fanbase, so if we make more use of NFTs, it should lead to monetization.

Takano: What kind of methods can you think of?

Kamikawa: Anime fans often talk about famous scenes. If you turn a video of that scene into an NFT and sell it, I'm sure there will be people who want to buy it.

Although it is not an anime, in the Web 3.0 industry, the content "NBA Top Shot" that turned famous scenes from the NBA (US professional basketball league) into NFTs has exceeded $700 million in sales in one year.

It is understandable that there are fans who would pay any amount if they could "own" the best scenes of their favorite players.

In the same way, there must be a potential desire to own that famous scene from an anime! Do you have any scenes like that, Takano-san?

Takano: Yes. I love the battle scene using 3D maneuver gear that was talked about as a godly drawing in Attack on Titan so much that I can watch it over and over again. Also, the confession scene in "Kaguya-sama: Love is War" and the "final battle" in "One Piece". If I heard that "it has been turned into an NFT" right after seeing that scene, I would probably buy it (laughs).

Kamikawa: Manga and anime fans feel that spending money to express their emotions and love is a joy.

Some people might find monetization a bit shady, but for fans, being able to pay money to support something is actually a blessing.

Let's look forward to seeing NFTs give rise to new services that make both operating companies and fans happy.

Profile

◉Mune Kamikawa

38 years old, freelance writer. Works as an IT journalist, focusing on the latest technology. Knowledgeable about Web 3.0 and NFT, has experience participating in an NFT art project. His favorite manga is "Souretsu Kouro" and his favorite anime this season is "Mushoku Tensei".

◉Kazuki Takano

After working for a publishing company, he went independent. He is currently the editor-in-chief of an entertainment web media company, 47 years old. His favorite manga are "Kaiji", "Usogui", and "Astra Lost in Space". He is addicted to the anime "Bocchi the Rock!" and has even attended a live performance.

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