NFTs (non-fungible tokens) are currently taking the online world by storm. Ever since the most expensive NFT was sold for over $91 million dollars, investors have had them on their radar. Additionally, with a potential to reach millions of dollars and more customers, big companies have even started creating their own NFTs.
As companies dip their toes into the NFT world, what does this mean for the world of digital marketing? We take a look at:
As its name suggests (non-fungible), an individual NFT is unique (unlike a $1 bill that can be replicated). It is a unique unit of data that can be traded and sold. Even if there are plenty of NFTs circulating the online world, each has its own identity. The uniqueness of NFTs is due to their specific data.
Moreover, NFTs reside on the blockchain. The blockchain is an online ledger responsible for tracking many activities, like the date of purchase, the price, and so on, related to an NFT. When buying or selling an NFT, the record goes straight to the blockchain, which is similar to storing a receipt in a filing cabinet. The current owner of an NFT will also be stored in the blockchain.
Thankfully, the blockchain’s structure is quite complex, making it difficult, if not impossible, to steal or manipulate any data stored on it. So, NFT owners can rest easy knowing that their investments are safe and secure.
Just like any popular and rising trend in marketing, NFTs also have an interesting history. Here’s a quick glimpse of the timeline.
NFTs are intended to act as a “colored coin.” Colored coins, which were issued on the Bitcoin blockchain around 2012-2013, act as a representation of any real-world assets in the digital world.
Founded in 2014, Counterparty, which still relies on the Bitcoin blockchain, serves as a platform for users wishing to create their own marketable currencies. With the platform’s success, it attracts major creators, such as:
After trading cards and in-game items dominated Counterparty, in October 2016, “memes” entered the platform, which served as the catalyst for the success of NFTs. One particular meme that a lot of people add their assets to is “Rare Pepes.”
As Rare Pepes became more popular, the creators at Axiom Zen created a unique game on the Ethereum blockchain with characters traded like baseball cards - the first use case for NFT technology in action. These collectible kitties are still available for game play and purchase on multiple Ethereum-based platforms.
With a wide variety of art forms, in-game items, trading cards, and memes available, NFTs are now attracting public awareness. NFTs became mainstream in 2021 and some can now fetch around a million dollars if sold.
Generally, NFTs provide a modern way for content creators and artists to sell their products. For example, an artist would no longer need to invest and depend on a gallery to display and sell their artwork. All they need to do is upload their artwork on a platform and wait for other people to invest/buy it.
Moreover, NFTs allow more profit for creators as the latter no longer need to pay any fees or rent just to showcase their achievements. This opportunity alone makes it attractive to any creator as they get to sell their work directly to interested buyers as an NFT. Additionally, a creator can even program in royalties. In this case, they can still receive a percentage of sales whenever their particular work is sold to a new investor.
The success and technology behind NFTs have inspired a lot of big companies to dabble in these digital collectibles. Both Taco Bell and McDonald’s have created a digital Taco Art and Big Mac, respectively. Not only is creating an NFT a move to show how a brand embraces modern innovation but it can also be an avenue for other digital marketing tactics.
These fast-food giants, and many other companies, have also utilized NFTs for the following reasons:
Despite how NFTs can offer digital marketers a new and fun way to drive brand awareness, promote new products, and reach a wide audience, it’s still advisable to conduct more research about these digital collectibles.
However, if you’re looking for professional digital marketing services, information regarding the best digital marketing tools, tips about website development, and the latest SEO strategies, contact Connection Model today!