Investing in NFTs is a popular emerging market right now!
Unless you’ve been living under a rock lately, say under the EtherRock (recently sold for $1.3 million), you’ve undoubtedly heard of Non Fungible Tokens (NFTs).
NFTs are the latest craze on the internet (ok for the last 1,5 years, but you get my drift) that opens up new opportunities for artists, designers, developers, and investors.
With thousands of projects and tokens, the NFT branch is now worth billions of dollars. This makes it the fastest growing sub-sector in the crypto world and blockchain scene.
Investing in NFTs
NFTs are not only economically very valuable but they can also be called revolutionary in terms of branding.
NFT projects such as Bored Ape Yacht Club, CryptoPunks, and CyberKongz are changing the world of the ‘brand-building’ approach.
The physical brand-building has been replaced by a digital metaverse with real cult status.
Projects such as BAYC and CryptoPunks have managed to create communities with enthusiastic followers, which is rarely seen with traditional brands.
It won’t happen anytime soon that someone will change their profile picture on social media to the pair of new Nikes they have purchased.
No matter how valuable and status-enhancing these Nikes may be.
But on Twitter, no one is surprised anymore when an account holder changes his profile picture to the avatar of his favorite NFT set.
Most communities can be found on the Discord of the relevant NFT set.
These are digital platforms on which members can chat with the team behind the NFT and with each other. You can see on the Discord how many members an NFT set has, the higher this number the better.
By actively watching the Discord you can see how alive the community is.
Announcements are also made on the Discord by the team behind NFT sets.
This can be announcing all kinds of developments in the set, but also that, for example, a celebrity has entered the set.
These very vibrant communities help increase the value of NFTs.
The most popular NFTs often represent the value of an average home in most places in the world.
For example, the CryptoPunks NFTs, which were given away for free in 2017, are now worth around 400,000 dollars.
Today we see many projects passing by at an early stage.
Almost all NFT projects employ a different but similar brand-building strategy.
These strategies have helped them build a vibrant community that has increased awareness and interest.
Despite the already great success of the NFT scene, experts believe there is still room for improvement in approach and technology.
Access and use value
This means that the hodler, or holder of an NFT, gains access to certain benefits. Such benefits can include membership in an exclusive club to access events.
Sometimes a role is even offered in a story.
An interesting case example is VeeFriends.
This is an NFT set made by the NFT world-famous Gary Vaynerchuk of 10,255 NFTs.
Holders of these NFTs will have the opportunity to be a member of the VeeCon project for 3 years. On this platform, Gary shares all his favorite events.
Below are 3 more examples of the access and use-value of an NFT project:
- Improve access by focusing on the benefits and quality that the NFT holder gains access to
- Improve technology whereby the holder is only granted access with the NFT
- The use value of NFTs today will be a strong change in the future. We will face a lot of innovation in the coming years and you can benefit from this.
Rarity NFTs and Exclusivity
Rarity and exclusivity are the backbones of any good NFT project.
Most sets consist of about 10,000 NFTs and that means that owners can quickly be counted as an exclusive club.
This is certainly the case with the most popular sets such as BAYC and CryptoPunks.
Not only are these NFTs more sought after by others, owners will also start flaunting them like peacocks.
By rewarding hodlers of NFTs for holding their items, a team can make a set more valuable.
Not many NFTs appear in the market, which only increases exclusivity.
In this way, the team can give the set an increasing prestige (and economic value).
It uses strategies such as community engagement, opinion polls, and the provision of additional benefits.
You see that many sets start as NFTs and later, for example, link the set to a game.
The opposite also occurs, GalaGames is an example of this. GalaGames has a very strong community and a very active Discord.
For you, as a holder of such NFT, you will have the opportunity to participate in the game and thus earn additional income.
Establishing a community for NFT projects means that the public is eager to buy into the project.
If they manage to win over the first 1000 fans, many more will soon follow. Especially if among the first 1000 some VIPs or well-known influencers have committed themselves to the project.
The latter in particular can ensure that there is a hype around the set and the trade will flourish.
The set is in a bull market and prices are sky-high!
Terms like “When Lambo” and “going to the moon” are popular expressions for this.
Fun, Interaction and a Meaningful Experience
Another way NFT projects build brands is by offering members an interactive and fun experience.
For example, by giving the individual NFTs a character in a story.
By sending these characters on a mission, the holder feels involved in the project.
People simply want to ‘belong to something’.
Your experience as an NFT holder and your ‘role’ in a story is the key to success.
As an NFT holder, you want to be part of the experience. Everyone likes to feel ‘special’ and wants to be part of…
The game scene has been very popular for years and many people enjoy it a lot. Let alone that there is also a lot of money involved!
By offering the holders of the NFTs a membership to the game, they will also start to HODL sooner.
This increases the stability of the set and will result in fewer fluctuations in the value.
The Potential of NFT Projects
Given the value of many NFT projects already, ‘brand visibility will only become more noticeable as time goes by.
They will be able to make the ‘space’ as big (or bigger) as a brand like Nike or Porsche.
Even the ‘regular’ brands are already watching the NFT scene with great interest.
For example, Nike has patented CryptoKicks. Still, others have already used NFTs for marketing strategies.
The film industry has also turned its attention to the NFT scene.
The well-known director Quentin Tarantino has indicated that he wants to publish 7 unedited scenes from his cult film Pulp Fiction in NFT form.
And film company Warner Bros. wants to release digital collections related to the upcoming science-fiction movie “The Matrix resurrection”.
You can imagine that these kinds of projects are ‘sold out in no time.
At the same time, NFT projects are also becoming more ‘mainstream’. For example, CryptoPunks has signed a deal with an agency to use the project for games, TV, and other forms of media.
In this way, NFT projects are slowly becoming globally known brands; powered by art, incredibly good marketing, and strong communities.
If you delve into the process of creating and marketing NFT sets, you should find out how much the audience is involved in the project.
The greater that involvement, the higher the chance of successful trading!