Five Types of Utility NFTs

Quick Summary

  • Utility NFTs are NFTs with use cases beyond just being unique digital assets. They are NFTs which grant their owner privileges, rights, or rewards which they would not otherwise be able to access.

Related: Utility Is Essential In The Fashion NFTs


Provide leverage to your NFTs

NFTs are constantly increasing in popularity, and developers are becoming ever more creative when it comes to dropping new utilities. Though many of the projects offer nothing but hollow words, there are still others, like BAYC, that actually provide utilities. That can provide true leverage in marketing campaigns.

1. NFT as a Concert Ticket:

NFTs can be used as tickets to physical events. It will not only grab people’s attention but can also add utility to already existing NFT projects. However, an NFT collection created solely for one event will be destined to expire as soon as the event is over. 

2. Digital Collectibles:

Bothered by the expiration of NFT projects? Digital Collectibles could be a way to go. Cryptokitties was the first NFT project that offered cute kittens that people can pet, and interestingly enough, those kitties could breed similar kittens. This project was so successful that it attracted 15% of Ethereum traffic. If a new project follows the lead with a good story, the odds of its success are high

3. Virtual Events:

Hosting and joining virtual events exclusively through NFTs is a new way how to interact with the communities. It gained momentum especially during Covid times, but the model continues. Ariana Grande and Snoop Dogg have hosted their concerts in the virtual world and the hype is still on.

4. NFTs and Crowdfunding:

NFT crowdfunding is the best marketing tactic, often used by music artists. They skip the production houses and streaming platforms and use NFT crowdfunding to make, distribute and stream their music. In this way, the profit is distributed among those who fund the album and the music goes directly to the listeners without any intermediaries.

5. NFT and GameFi:

Usually, games have in-app purchases and users spend thousands of dollars to buy the skins and unlock the characters and avatars. But the users of these classic games never own neither the skins nor the characters. If the game decides to go off or removes the skins, they can’t do a thing about it. Blockchain play-to-earn games have solved this problem with NFTs. Every skin, weapon, avatar, and other assets are NFTs that users can sell in the marketplace or lend to other players and earn interest on it. This generates further funds for the game players. Therefore, this sector is called GameFi or Game Finance.

Conclusion

The domain of NFTs is already crowded, and if a project is not clever enough to market and pitch it well, it will be very hard to get ample exposure. However, good marketing will only win you hype, a good project will win you community.

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author: Tatiana Cernochova

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.