- NFTs have come a long way since its beginnings and will become more than just tokens to profit on. They could offer many utilities over time. For example, they could be used for marketing and digital strategy initiatives.
- Many NFT companies should focus more on the benefits they bring to people than just banking on this hot trend.
Non-fungible tokens (NFTs) will become a critical component of all brands’ marketing and digital strategy initiatives. Now we’re just in a starting phase of NFTs, where everyone seeks profits, not utility solutions. But they will come eventually. Digital marketing is stronger every year, and NFTs could help it grow and be more effective.
NFTs are not just a way to profit
While media like CNN and New York Times warn people of the NFT bubble fueled by eye-popping valuations, interest for NFTs is getting bigger in many sectors. Public attention is always shifting from one trend to the next, so the huge surge in popularity of NFTs that we’ve been seeing would eventually taper off as a result. This presents us with an incredible opportunity to explore the many doors that NFTs will open to creators, IP owners, consumers, etc.
Brands that look for new audiences can use NFTs as a useful marketing channel. Once NFTs gain more mainstream recognition beyond the initial boom, creators will have the ability to reach more and more users. Platforms like Discord, Twitch and Telegram have already demonstrated so many ways to create and nurture a fan base. Now imagine what a robust NFT marketplace will add to this growing movement.
Utility of NFTs
As digital certificates of authenticity, NFTs can function as guardians of intellectual property (IP) rights. The NFT space will ultimately look like the music publishing model, where music publishers and songwriters amass catalogs of copyrights that deliver a persistent stream of royalties in perpetuity, driving long-term valuation. NFTs also serve as digital passports, completely revolutionizing the fan experience and reimagining the idea of the fan club for artists, brands and IP owners.
However, the industry should shift the attention of the media and consumers away from the six and seven-figure primary sales numbers to a focus on creating real value by infusing true utility into NFTs. The utility is one of the most basic parts of any product or service, which is missing on many NFTs or cryptocurrencies. So, NFT companies should focus more on fans and consumers, not on fat profits.
NFTs will become a fan’s passport and gateway to unlocking unique experiences (online and offline). This is going to occur as NFT collections become smarter, more strategic, more gamified and deliver meaningful utility that sustains long-term fan engagement.
As the industry matures, people will become more sophisticated in how they think about NFTs. However, users must come to more understanding and think about utility solutions, not just potential profits. The utility will become increasingly important as fans and consumers seek to better understand the factor behind NFTs. So, before buying an NFT, ask yourself important questions. What benefits will I gain? What’s the real utility behind this NFT? Is this project just trying to make money or create something valuable?
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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.