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NFTs, also known as non-fungible tokens, are a fast-growing asset class in the cryptocurrency market. Public awareness of NFTs emerged in 2021 when a laser trend of collectible digital artwork emerged. This was revolutionary technology as it allowed creators to tokenize, authenticate, and sell digital content.
At the start of 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 so many people spend real money on virtual goods?
To help you fully understand the potential of NFTs, let’s start with their evolution until today, then move on to their future applications.
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 in determining the rightful owner of an asset, let alone distinguishing similar assets.
Related: Accessing Web 3.0 in One Click: Blockchain Adoption Toolkits
Past, present and future: the evolution of NFT
So far, artists, filmmakers, musicians and other creators have been early adopters of NFT technology. Many companies and celebrities have also started using NFTs to engage their followers. A recent trend is to use the technology for different types of membership passes or proofs 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 a game changer. Their widespread use will catalyze decentralization and the establishment of trustless/permissionless networks. As such, NFTs will underpin the economies of the Metaverse and Web 3.0.
Additionally, NFTs are convenient for decentralized verification purposes. For example, tokens can be used to prevent scams and a plethora of identification-related security issues, since each token’s credentials are verifiable on-chain.
Additionally, NFT technology can help brands overcome many of the barriers that have prevented them from more fully adopting digital marketing practices.
Related: Web3 could see its own internet boom. Here’s how to survive the bust.
NFT Benefits: Obstacles to Profitability
You’ve heard the saying, it takes money to make money. NFT minting can be profitable but it is expensive and requires significant investment. While there are free mint NFTs, most tokens are issued and sold for sums that might intimidate ordinary investors. Let’s not even get into the high gas and marketing costs for emitters!
Earning potential with NFTs
Similar to cryptocurrency, NFTs are speculative investments and subject to fluctuations. Although it is possible that you will make a lot of money by buying or selling NFTs, there are no guarantees. Therefore, a little homework can go a long way. Before buying anything, get into the habit of analyzing previous sales records. This is a reliable way to understand long-term earning potential.
What’s up with NFTs today?
Given their growing popularity, NFTs remain an attractive investment opportunity. This is evident by the growing amount of trades and number of companies entering the space. Over the past few months, market momentum has seen a sharp but temporary decline due to what has been called 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, NFT’s market capitalization surpassed $23 billion, representing a 20,000% year-over-year growth. Major brands have started investing in the crypto and NFT space:
- According to Gartner Hype Cycle for key technologies, NFTs will dramatically transform marketing functions.
- To The Digital Battery SummitAdcolony and The Drum brought together executives from Coca-Cola, Dole and VaynerNFT to talk about how they used NFTs in their marketing campaigns.
- Tom Simpson, Vice President 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 might be discouraged from getting into NFTs at first, as the communities are still small. After all, Opensea averages only 20,000 daily users. However, early integration 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 involved the brand’s mission for healthy eating. The team talked about the technology’s learning curve and discussed what they’ve learned along the way.
Related: Make your brand a household name using the power of NFTs
So how can NFTs be used in the context of modern marketing?
- NFTs offer ownership and a way to connect directly with communities.
- Brands are no longer limited to offering physical goods and services. NFTs can be anything digital – artwork, 3D animation, music, landing in the metaverse, etc.
- Brands can track the ownership and origin of their assets and ensure that the data associated with them is accurate and tamper-proof.
- Consumers are demanding transparency and NFTs offer businesses a way to meet that need.
- NFTs offer brands a way to interact more effectively with their customers.
- NFTs eliminate complex logistics like shipping, taxes, and storage costs.
NFT marketing is more than just putting your NFT in front of your target audience. It’s about using creative digital marketing strategies to drive unique and meaningful experiences while achieving long-term marketing goals.
According Digital Asia-Pacifica smart way to enter the space is to partner with experienced NFT digital marketing agencies to generate buzz and get your NFTs out to the right audience.
To achieve successful adoption, digital marketers need to learn the ever-evolving NFT concepts, adopt NFT influencers, and ensure the legitimacy of their business.
The best opportunities to make significant profits often arise when the markets are new. Fortune favors the brave.