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NFTs will be foundational to metaverse and web 3.0 economies alike and should be part of every marketers toolkit.
NFTs, also known as non-fungible tokens, are a fast growing asset class within the cryptocurrency market. Public awareness of NFTs emerged back in 2021 when a laser-hot trend of collectable digital artwork hit the scene. It was a revolutionary technology because it enabled 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 are so many people shelling out real dollars to acquire virtual goods?
To help you fully understand the potential of NFTs, let’s begin with their evolution leading to the present, then move on to their applications going forward.
NFTs have made the process of ownership and identification of digital assets easier than ever before. The metadata underlying all non-fungible tokens are mapped on the blockchain in a decentralized and secure manner. These data can be quickly verified and are helpful for determining the rightful owner of an asset, not to mention telling similar assets apart.
Related: Accessing Web 3.0 With a Click: Toolkits for Blockchain Adoption
So far, artists, filmmakers, musicians and other creatives have been among the earliest adopters of NFT technology. Numerous companies and celebrities have also begun using NFTs to engage their following. One recent trend is to use the tech for various kinds of access passes or proof of membership.
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 be foundational to metaverse and web 3.0 economies alike.
In addition, NFTs are practical for decentralized verification purposes. For instance, tokens can be used to prevent scams and a plethora of ID-related security issues because the credentials of each token are verifiable on-chain.
What’s more, NFT technology can assist brands in overcoming many of the obstacles that have held them back from adopting digital marketing practices more fully.
Related: Web3 Could See Its Own Dot-Com Boom. Here’s How To Survive The Bust.
You’ve heard the saying, it takes money to make money. NFT minting can be profitable but it is expensive and requires substantial investment. While free-mint NFTs do exist, most tokens are issued and sold for sums that might intimidate everyday investors. Let’s not even get into gas fees and steep marketing costs for the issuers!
Similar to cryptocurrency, NFTs are speculative investments and prone to fluctuation. Though it is possible you will make big bucks buying or selling NFTs, there is no guarantee. Therefore, a little homework can go a long way. Before you buy anything, get in the habit of analyzing previous sales records. This is a reliable way to understand long-term earning potential.
Given their rapid popularity growth, NFTs remain an attractive investment opportunity. This is evident by the increasing quantity of trades and number of companies entering the space. In recent months, market momentum has taken a sharp but temporary decline due to what’s been dubbed the crypto winter.
Notwithstanding, experts predict a rise in global NFT trading volume as the assets live up to their potential in the years ahead.
NFT projects have become a hot topic, especially in the marketing industry. In 2021, the NFT market cap surpassed $23B, representing a 20,000 percent growth year on year. Major brands have begun investing in the crypto and NFT space:
Related: Make Your Brand a Household Name Using the Power of NFTs
NFT marketing is more than getting your NFT in front of your target audience. It is about utilizing creative digital marketing strategies to generate unique and meaningful experiences while achieving long-term marketing objectives.
According to AsiaPac Digital, a smart way to enter the space is by partnering with experienced digital NFT marketing agencies to generate buzz and get your NFTs to the right audience.
To achieve successful adoption, digital marketers need to learn NFT concepts that are constantly evolving, adopt NFT influencers and ensure legitimacy in their activities.
The best opportunities for significant profit making often arise when markets are new. Fortune favors the bold.
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Emily Rella
Jonathan Small
Emily Rella
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