Non-fungible tokens or NFT technology is still a relatively new movement in digital consumerism. However, its impact has already created a long-lasting effect that will be hugely transformative for the e-commerce market in the years to come.
NFTs are individually authenticated, verifiable, and non-interchangeable items. Complete with unique identification and metadata, they are a genuine one-of-a-kind object with only one official owner at any given time. Well-known brands are willing to invest in NFTs, even at this early stage, because they help boost the user experience, increase brand awareness, and expand opportunities for brand engagement.
The NFT market has experienced a ten-time growth throughout the last two years and is not expected to slow down anytime soon. For example, as prices and demand continue to increase: the world’s most expensive NFT artwork, Beeple’s Everydays, was just purchased for a staggering $69.3 million. Brands can utilize NFTs in mobile advertising campaigns, which can be distributed strategically across different digital outlets, and monetized numerous times. NFTs can aid a brands’ equity, create publicity for a product launch or brand event, or be used as a form of customer appreciation, serving as a unique custom gift or coupon. As this trend persists, brands will begin to see that an entirely new form of revenue is opening up with NFTs, as goods can now be sold in a completely digital format instead of a physical product.
What does this mean for the future of NFTs?
The NFT market exploded this year and the interest is only expected to increase moving forward. According to Brandessence Market research, there was growth of 328% in NFT transactions during the first half of 2021, and third quarter of 2021. There are a variety of reasons why we’re seeing significant demand and interest. NFTs decentralize commerce and increase transparency. They allow for greater creative freedom while opening a substantial opportunity for peer-to-peer trade. Artists and content creators can track their creations and ensure stronger compensation.
While NFTs have been a central topic over the past year and a new one to many, creators have found new ways to become more innovative. You can sell anything from music and digital racehorses to artwork, virtual houses, and products via your influencer channels — what we are seeing now is really the tip of the iceberg because it is essentially a digital collectible. The number of marketplaces that sell NFTs has increased as well. We’re just at the beginning of this experience.
What should consumers watch out for before investing in NFTs of their own?
It should be no surprise that NFTs are making a significant impact on commerce today for creators, brands, and consumers. Many people have embraced this movement as cryptocurrencies and other digital assets have skyrocketed in price. Why are NFTs the new “it” term, and is this something I should be investing in? You can be the judge of that. In the meantime, if you are unsure about NFTs and how to get started investing in them, here are a few things to consider:
- What exactly is this NFT?
- Where can I purchase NFTs?
- Which are the best investments?
- How can I actually pay for and track my investments?
Understanding the Basics
Non-fungible tokens or NFTs are a unique one-of-a-kind digital token that is part of the Ethereum blockchain. Given the amount of digital currency NFTs are selling for, it is important for buyers to ask — what exactly will I own? NFTs may contain the digital work in question but rather act as a digital certificate that certifies the buyer owns a unique version of the work. This question of ownership can cause problems. An asset could be removed, swapped, or see the domain on which it is held go down. So it’s important to do your homework.
Where Can I Shop for NFTs?
NFTs are sold in many ways and on a variety of platforms. As a newcomer to the digital currency world, it’s probably best to start with a reputable online marketplace well-known for solid transactions and trustworthy training. As you become more adventurous and ultimately more educated, you can start looking at purchasing NFTs directly from brands and marketplaces.
Which are the Best Investments?
The best investments are those that you are passionate about. If you are an art connoisseur, it would be a wise investment to look at the many options out there to own a piece of art. In addition, if you are a fashionista, you could look at some of the more prominent brands out there starting to sell and promote their line in a digital world. As mentioned above, always do your research prior. Since this currency is new and gaining momentum, there are still imitators and scammers out there who want to rob you of your assets.
Where Can I Pay for and Track My Investments?
Some marketplaces accept payment in standard currencies like the U.S. dollar, in many cases, you can’t use cash or credit cards to pay. Prices are set in the cryptocurrency the network uses. Whatever the NFT requires, you would have to purchase it with the correct form of blockchain or other currencies. Before you purchase anything, you will need to get a digital wallet (crypto wallet) set up to hold and track all your transactions. You will need to load your wallet with crypto but be on the hunt for NFTs to invest in.
The Creator Passport NFT offers ongoing benefits to passholders. The Creator Passport NFT will help empower our creator community to take hold of the opportunities to abound in Web3.0 and provide ongoing support to ensure continued success.
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