Mark Cuban & Coinbase Back Eternal: NFT Marketplace for Twitch Clips

The Rise of NFT Marketplaces and Internet Memorabilia

The NFT space appears to be collectively focused on transforming internet history into a gamified experience, with substantial financial investment. Iconic images like the original “Doge” and “Pepe” have been sold for millions, leading to the emergence of so-called meme millionaires.

However, the practice of buying and selling high-value JPEGs hasn’t necessarily resonated with the broader internet community, failing to fully demonstrate the value proposition of NFTs to the average user.

Introducing Eternal: NFTs for Gaming Stream Clips

Eternal aims to gamify the trading of internet history, but with a specific focus on popular clips from game streamers. Its user interface closely resembles that of NBA Top Shot, allowing users to purchase serialized clip packs from partnered streamers.

This marketplace is developed by Zelos Gaming, a startup founded by Jeffrey Tong and Derek Chiang, who previously worked on a cross-platform battle pass system before shifting their focus to NFTs with the launch of Eternal.

Investment and Backing

The startup has secured $4.5 million in its latest funding round, attracting investment from prominent firms and individuals. Backers include NFX, Mark Cuban, Coinbase Ventures, Gary Vaynerchuk, Dapper Labs, and Arrington Capital.

Previously, the team received support from the Y Combinator accelerator program.

A "Top Shot" Model for the Streaming World

Currently, Eternal functions as a “Top Shot for X” platform, mirroring the design of its predecessor. However, the team envisions significant future development for the platform.

Unlike Top Shot’s partnerships with the NBA and Players Association, Eternal faces the challenge of establishing a complex network of agreements with individual streamers and networks to retain their participation.

The startup is primarily targeting streamers within the top 0.05% of Twitch based on popularity.

Immortalizing Moments on the Blockchain

Streamers can offer their top clips – readily tracked by platforms like Twitch – and videos from their social media channels for sale, effectively preserving these moments on the blockchain.

The company intends to connect emerging streamers with established personalities, increasing creator awareness and fostering a user base that has a financial stake in their success.

Creator Monetization and Fan Engagement

“I think Top Shot is a great model but [Eternal] works way better for creators because it gives creators a brand new way to monetize,” explains CEO Jeffrey Tong to TechCrunch.

The potential for closer fan-creator relationships within the NFT space is promising, with investors actively supporting creators. However, the impact of smaller investments – tens or hundreds of dollars – compared to larger sums remains to be seen.

Built on Flow Blockchain

A key feature of the platform is its foundation on Dapper Labs’ Flow blockchain. This choice prioritizes user-friendliness and simplifies the onboarding process, albeit at the cost of some decentralization.

Operating outside the Ethereum ecosystem and utilizing USD for transactions expands the potential consumer base, moving away from a niche audience of crypto enthusiasts.

The company plans to expand Eternal to additional blockchains in the future, though cross-chain compatibility presents ongoing challenges.

Early Traction and Market Performance

Flow currently hosts a limited number of active marketplaces, but Eternal has demonstrated early momentum. According to Cryptoslam, the marketplace has processed approximately $300,000 in transactions this summer.

This indicates a growing interest in the platform and its unique offering within the NFT landscape.