Challenging NFT authorization: Elton John and Nike as examples in the Roblox metaverse

In a recent TV interview, the CEO of the Roblox metaverse, David Baszucki, discussed the vision of “objects and NFTs transiting fluidly between different platforms,” and also presented an example of theoretical usage.  

In addition, another Roblox executive hinted at the possibility of introducing NFTs on the platform by 2022. 

Let’s see all the details below. 

The role of NFTs in the metaverse according to the CEO of Roblox

As we know, Roblox currently generates hundreds of millions of dollars each quarter through the sale of its digital currency, which is used by players to acquire assets within its closed platform. 

However, founder and CEO, David Baszucki, is contemplating the idea of opening up the Roblox ecosystem to allow the use of non-fungible tokens (NFTs) on both his platform and others.

In fact, during an interview with CNBC, Baszucki shared his “dream” regarding objects and NFTs that can move freely between different platforms, emphasizing the importance of interoperability. 

Although it is unclear whether Baszucki was expressing a vision shared by the company, he illustrated a potential scenario, suggesting that celebrities such as Elton John could create and sell beneficial objects on Roblox, which would subsequently become NFTs and circulate outside the platform.

In addition, interoperability would allow digital assets, including NFTs, to operate on different platforms, breaking the closed ecosystem model in which an object or avatar is bound to a specific platform. 

Baszucki indicated that should interoperability for NFTs on Roblox be successful, creators such as Elton John or companies such as Nike would have a significant role and some control in the process.

In this regard, Baszucki mentioned Nike as an example of a company that has invested in NFTs, highlighting the decent success it has achieved through the sale of limited edition shoes through the use of specific tokens.

Roblox and NFTs: a perspective that remains in the background

Following the news, recall that this is not the first time a Roblox executive has hinted at the possibility of introducing NFTs on the platform. 

In fact, in 2022, the then Chief Business Officer, Craig Donato, spoke of NFTs as something destined to work on the platform, almost considering them inevitable. 

However, he later emphasized that, at the time, the move to NFTs did not seem to be of primary importance. Donato subsequently left Roblox earlier this year.

Despite the potential positive impact on NFT adoption, considering that Roblox now has more than 70 million daily active users, it appears that the push to embrace NFTs may lack urgency for some time. 

Recall also that the platform continues to experience significant growth in its user base and earn substantial profits from the sale of its currency.

During the third quarter of this year, the company announced that it generated bookings worth $839.5 million, showing a 20% increase over the same period last year. 

Roblox defines “reservations” as the revenue generated when users purchase “Robux,” the platform’s in-app currency.

Roblox: stock recovery and quarterly performance on the rise

Roblox has gone through an up-and-down period in the stock market in recent months, falling to $25 per share in September after a peak of $45 earlier in the year. 

However, the stock has made a remarkable recovery, gaining further momentum.

Specifically, shares of the well-known video game developer surged 19% at market open on 8 November, following the disclosure of third-quarter results that exceeded analysts’ expectations in terms of earnings and profits. 

Roblox. specifically, reported a loss per share of 45 cents for the third quarter, below the estimate of 51 cents per share.

Adjusted revenues, or bookings, reached $839 million for the period, exceeding Wall Street’s forecast of $830 million, recording a 20% year-over-year increase. 

In addition, the number of average daily active users (DAUs) grew 20% year-on-year to 70.2 million in the third quarter. Similarly, players spent more than 16 billion hours on Roblox during the quarter, a 20% year-on-year increase.

Roblox’s net loss in the third quarter was $3 million, down sharply from the $277.2 million recorded in the same period last year.

Finally, in its 8 November letter to shareholders, Roblox highlighted significant revenue growth in East Asia and Western Europe, with the United States and Canada continuing to drive bookings growth.