Tips for Entrepreneurs Looking to Break Into the NFT Industry
The newest trend in blockchain is the rise of NFTs also known as Non-fungible tokens, which are cryptographic tokens that signify digital ownership of exclusive items such as art, music, gaming skins and more.
In the last 30 days, more than $100 million worth of NFTs have been sold, with famous celebrities such as Grimes, Steve Aoiki and 3LAU raking in millions of dollars in transactions.
Since last year, the industry has grown in excess of 300%, sparking a fury between creatives, collectors and entrepreneurs looking to share their talent and showcase their digital collections.
NFTs are shifting the way artists sell and trade their craft. Their cases show how brands can enter the world of NFTs, the blockchain, and decentralization. Welcome to Web 3.0.
NBA Top Shot links into fan’s nostalgia for accumulating sports cards. Except these digital cards are live moments seized from games. Mark Cuban, owner of the Mavericks, sees a future for digital properties in the NBA. Cuban recognizes that anything digital can be an NFT. Though, the challenge is forming the market. NBA Top Shot proved that there’s a marketplace for owning “the best moments from NBA history”.
Superstars are rapidly monetizing NFTs. Performers like Linkin Park’s Mike Shinoda stated, “I would never get even close to $10k, after fees by DSPs, label, marketing, etc.” Shinoda released a music clip from a forthcoming song on Rarible in February 2021.
Other stars have jumped into NFTs like YouTuber Logan Paul, and artist Post Malone. Stars are using NFTs to interact with fans in new ways. Post Malone partnered with NFT artist Fvckrender and social money platform, Fyooz, to airdrop new tokens with those who have enough FYZ NFTs to play beer pong in Malone’s Celebrity World Pong League.
Virtual Real Estate Is Booming
“Decentraland” is a word you might hear in the not-so-distant future. Virtual real estate signifies real potential for financiers. Like the huge URL domain grabs of the early Dot Com era, digital land seizes are going for millions. Since its opening to wider audiences in February 2020, Decentraland sold $1 million in virtual land.
In Axie Infinity, a crypto-Tamagotchi virtual ecosystem, a member purchased nine digital plots of land as one lot for 888.25 Ether. At the time, 888.25 Ether was worth $1.5 million.
Individuals are purchasing celebrity art, trading cards, and digital lands as reserves for the future. But fashion and entertainment is said to be the Holy Grail on the blockchain. Now you can resell or trade your digital pieces but soon you’ll be able to outfit your avatar and virtual home on the blockchain.
So what does this mean for the future? NFTs are presently being used as a way of investment. Their value varies on demand of the digital item. Individuals buy, trade, and sell NFTs as they would stock in the stock market, but that won’t be the case forever.
There are numerous different avenues for brands and businesses to explore the blockchain and NFTs. Mark Cuban labels it as the “Wild West”. Blockchain-backed digital worlds are ripe with possibility. Now is the time to form the structures to support NFTs and find your company’s next audience on the web 3.0.