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NFTs, also known as non-fungible tokens, are a rapidly growing asset class in the cryptocurrency market. Public awareness of NFTs re-emerged in 2021 when the hot laser trend of collectible digital artwork hit the scene. It was a revolutionary technology because it enabled creators to code, authenticate and sell digital content.
At the beginning of 2022, the global NFT market was valued at around $3 billion. This evaluation is is expected to reach $13.6 billion by 2027. So, you might be wondering, why are so many people spending real dollars to get virtual goods?
To help you fully understand the potential of NFTs, let’s start with their evolution to the present, and then move on to their applications from now on.
Today’s Digital Property Revolution
NFTs have made the process of owning and identifying digital assets easier than ever. The metadata behind all non-fungible tokens on the blockchain is set in a decentralized and secure manner. This data can be quickly verified and is useful in identifying the rightful owner of an asset, not to mention differentiating between similar assets.
Related: Web 3.0 One-Click Access: Toolkits for Blockchain Adoption
Past, Present and Future: The Evolution of NFT
So far, artists, directors, musicians and other creators have been among the early adopters of NFT technology. Many companies and celebrities have also started using NFTs to engage their followers. One recent trend is the use of technology for different types of access or proof of membership.
The future of NFTs in the web 3.0 landscape
When it comes to Web 3.0, the next evolution of the Internet, NFTs is a game changing. Their widespread use will stimulate decentralization and create untrusted/unauthorized networks. As such, NFTs will be the foundation for both the metaverse and web 3.0 economies.
In addition, NFTs are practical for decentralized verification purposes. For example, tokens can be used to prevent frauds and a large number of ID-related security issues because the credentials of each token can be verified on the chain.
Moreover, NFT technology can help brands overcome many obstacles that have held them back from fully adopting digital marketing practices.
Related: Web3 can see its own Dot-Com boom. Here’s how to survive the bust.
NFT earnings: obstacles to making money
You have heard the old saying, that making money requires money. NFT coinage can be profitable, but it is expensive and requires significant investment. Although there are free NFTs, most tokens are issued and sold for sums that may frighten investors daily. Let’s not even get into the exorbitant gas fees and marketing costs of exporters!
Earning potential with NFTs
Similar to cryptocurrencies, NFTs are speculative investments and subject to volatility. Although it is possible to earn big bucks buying or selling NFTs, there is no guarantee. So, a little homework can go a long way. Before you buy anything, get in the habit of analyzing past sales records. This is a reliable way to understand the long-term earning potential.
What is the news with NFTs today?
Due to their rapid growth in popularity, NFTs remain an attractive investment opportunity. This is evidenced by the increase in the number of deals and the number of companies entering the space. In recent months, market momentum has seen a sharp but temporary drop due to what has been called the crypto winter.
Despite this, experts anticipate an uptick in global NFT trading volume as the assets live up to their potential in the coming years.
NFT Accreditation: Applications and Benefits
NFT projects are becoming a hot topic, especially in the marketing industry. In 2021, NFT’s market capitalization exceeded $23 billion, representing a growth of 20,000 percent year-on-year. Big brands are starting to invest in crypto and NFT:
- according to Gartner Hype Cycle For key technologies, NFTs will transform marketing functions in a big way.
- in digital drum topAdcolony and The Drum brought together executives from Coca-Cola, Dole and VaynerNFT to talk about how they use NFT in their marketing campaigns.
- Tom Simpson, Vice President of Adcolony, noted that brands can raise capital by selling NFTs. Marketers can incorporate NFTs into their promotions or as part of a customer relationship management (CRM) mix.
- Avery Akkineni, president of VaynerNFT, stated that marketers may be put off by jumping into NFTs in the early stages because communities are still small. After all, Opensea only averages 20,000 daily users. However, inclusion early on can help solidify a brand’s authenticity in the metaverse.
- Coca-Cola recently started a campaign where their story is about the metaverse and real life.
- Dole’s campaign included the brand’s mission to healthy nutrition. The team talked about the technology’s learning curve and discussed what they learned along the way.
Related: Make your brand a household name using the power of NFTs
So how can NFTs be used in the context of modern marketing?
- NFTs provide ownership and a way to connect with communities directly.
- Brands are no longer limited to providing physical goods and services. NFTs can be anything digital – artwork, 3D animation, music, land in the metaverse, etc.
- Brands can track ownership and origin of their assets and ensure that the data associated with them is accurate and cannot be tampered with.
- Consumers are demanding transparency and NFTs provide a way for companies to meet this need.
- NFTs provide a way for brands to interact with their customers more effectively.
- NFTs eliminate complex logistics such as shipping, taxes, and storage costs.
NFT marketing is about more than just getting your NFT in front of your target audience. It is about using creative digital marketing strategies to generate unique and meaningful experiences while achieving long-term marketing goals.
according to AsiaPac Digitala smart way to enter the space by partnering with experienced digital NFT marketing agencies to create a buzz and get NFTs to the right audience.
To achieve successful adoption, digital marketers need to learn the ever-evolving concepts of NFT, accredit NFT influencers and ensure legitimacy in their activities.
The best opportunities for big profits often arise when markets are new. Wealth favors the bold.