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NFTs, also known as non-fungible tokens, are a rapidly growing asset class in the cryptocurrency market. Public awareness of NFTs emerged in 2021 when a hot laser trend of collectible digital artworks appeared on the scene. It was a revolutionary technology because it allowed creators to tokenize, authenticate and sell digital content.
In early 2022, the global NFT market was worth around $3 billion. This valuation is expected to reach $13.6 billion by 2027. So, you might be wondering, why are so many people spending real dollars to acquire virtual goods?
To help you fully understand the potential of NFTs, let’s start with their evolution leading up to the present, and then move on to their applications in the future.
Today’s digital property revolution
NFTs have made the process of owning and identifying digital assets easier than ever. The metadata underlying all non-fungible tokens is mapped onto the blockchain in a decentralized and secure manner. This data can be quickly verified and is useful for determining the rightful owner of an asset, not to mention distinguishing similar assets.
Related: One-Click Web 3.0 Access: Toolkits for Blockchain Adoption
Past, present and future: NFT evolution
So far, artists, filmmakers, musicians and other creatives have been among the early adopters of NFT technology. Many companies and celebrities have also started using NFTs to attract their followers. A recent trend is to use the technology for various types of access tickets or proof of membership.
The future of NFTs in the web 3.0 landscape
When it comes to web 3.0, the next evolution of the internet, NFTs are game changers. Their widespread use will catalyze decentralization and the creation of trustless/permissionless networks. As such, NFTs will be fundamental to both metaverse and web 3.0 economies.
Additionally, NFTs are practical for decentralized verification purposes. For example, tokens can be used to prevent fraud and a host of identity-related security issues because each token’s credentials are verifiable on-chain.
In addition, NFT technology can help brands overcome many of the barriers that have prevented them from adopting more comprehensive digital marketing practices.
Related: Web3 could see its own Dot-Com boom. Here’s how to survive the bust.
NFT earnings: barriers to making money
You’ve heard the saying, it takes money to make money. NFT mining can be profitable, but it is expensive and requires significant investment. While free-mint NFTs exist, most tokens are issued and sold for amounts that may intimidate everyday investors. Let’s not even get into gas fees and steep marketing costs for publishers!
Profitability with NFTs
Similar to cryptocurrencies, NFTs are speculative investments and prone to fluctuations. Although it is possible to make a lot of money buying or selling NFTs, there is no guarantee. So a little homework can go a long way. Before buying anything, get into the habit of analyzing past sales records. This is a reliable way to understand your long-term earning potential.
What’s the news with NFTs today?
Given their rapid rise in popularity, NFTs remain an attractive investment opportunity. This is evident from the increasing volume of transactions and the number of companies entering the space. In recent months, market momentum has taken a sharp but temporary dip due to what has been dubbed the “crypto winter.”
Nevertheless, experts predict an increase in global NFT trading volume as the assets live up to their potential in the coming years.
NFT adoption: applications and benefits
NFT projects have become a hot topic, especially in the marketing industry. In 2021, the NFT market cap exceeded $23 billion, representing 20,000 percent year-over-year growth. Big brands have started investing in the crypto and NFT space:
- According to the Gartner Hype Cycle for Key Technologies, NFTs will greatly transform marketing operations.
- At The Drum Digital Summit, Adcolony and The Drum brought together executives from Coca-Cola, Dole and VaynerNFT to talk about how they’ve used NFTs in their marketing campaigns.
- Tom Simpson, VP of Adcolony, pointed out that brands can raise capital by selling NFTs. Marketers can incorporate NFTs into their promotions or as part of their customer relationship management (CRM) mix.
- Avery Akkineni, president of VaynerNFT, said marketers may be discouraged from jumping into NFTs in the early stages because the communities are still small. After all, Opensea averages just 20,000 daily users. However, onboarding early on could help cement brand authenticity in the metaverse.
- Coca-Cola recently launched a campaign in which their story revolved around the metaverse and real life.
- Dole’s campaign was about the brand’s mission of healthy eating. The team talked about the learning curve of the technology and discussed what they learned along the way.
Related: Make your brand a household name using the power of NFTs
So, how can NFTs be used in modern marketing?
- NFTs provide ownership and a way to connect directly to communities.
- Brands are no longer limited to offering physical goods and services. NFTs can be anything digital — artwork, 3D animation, music, land in the metaverse, etc.
- Brands can track the ownership and provenance of their assets and ensure that the data associated with them is accurate and can’t be tampered with.
- Consumers demand transparency and NFTs provide a way for companies to meet this need.
- NFTs offer a way for brands to engage with their customers more effectively.
- NFTs eliminate complex logistics such as shipping, taxes and storage costs.
NFT marketing is more than just getting your NFT in front of your target audience. It’s about using creative digital marketing strategies to create unique and meaningful experiences while achieving long-term marketing goals.
According to AsiaPac Digital, a smart way to enter the space is to partner with experienced NFT digital marketing agencies to generate buzz and get your NFTs to the right audience.
To achieve successful adoption, digital marketers need to learn ever-evolving NFT concepts, adopt NFT influencers, and ensure legitimacy in their operations.
The best opportunities for significant profits often occur when markets are new. Fortune favors the bold.