The Uprise of NFTs: The Digital Collection Paradise
NFTs have taken the world by storm, with a lot of the success observed lying in the endless opportunities that come with the rise in popularity of NFTs. From virtual asset listings to managing ticket sales for upcoming events, the technology is here but what are we going to do with it?
Artists like Grimes have taken this hype to a whole other level, selling their own unique NFTs on the open market and making just shy of $6 million in 20 minutes. Stay tuned for more examples below and a deep dive into what NFTs really are.
What is an NFT?
To clarify, a non-fungible token (NFT) is a digital unit of data that is stored on a decentralized database, otherwise known as the blockchain. These NFTs can either be a digital ‘twin’ of a physical item, for instance, a digital model of a watch or car. Alternatively, an NFT can simply represent a unique digital item, such as a digital piece of art (Beeple).
To more accurately assess the impact that NFTs have on loyalty, the question will only be answered partially in this post. From the high level, it can be stated that NFTs will have a positive impact on the loyalty scene. Take the entertainment and art industry, which has seen a lot of movement recently because NFTs allow independent artists to better reward their loyal fan base with exclusive behind-the-scenes and other experiential/transactional awards (CNN).
“Artist Grimes recently sold $5.8 million of NFTs in just 20 minutes, and DJ 3LAU sold an NFT album for $11.6 million. American DJ and music producer Steve Aoki also got in on the trend and it’s not stopping there.” (Bloomberg)
Use Cases and Examples of NFTs
Although there are various avenues that can be explored through NFTs, some of the most notable examples are listed below.
Top 3 NFT Use Cases:
The clear distinction between virtual assets and arts/collectibles is the simple fact that virtual assets are only digitally available, whilst arts/collectibles NFTs can be linked to a physical item.
Architects, designers, and musicians are starting to sell digital rights to their properties or even going as far as selling virtual blueprints to an exclusively digital house.
Arts and Collectibles
Another example of a powerful NFT use case is the arts and collectibles scene. Chubbies collectibles made 1,669 ETH or more than CHF2.5 million in the last week, selling their pixel NFT GIFs.
Seeing a 176,548% increase, which perfectly shows how volatile the market is and how quickly virality plays a role in springing certain collectibles to the top of the chart.
The NFT art piece listed by Beeple sold for $69 million a few weeks ago. And that is not the end as we are seeing more famous artists such as Takashi Murakami, who is using this opportunity to list his own NFT art pieces on the open market.
Since we specialize in all things loyalty and blockchain, we took this amazing opportunity to expand our NFT game as well. This month we are announcing our first partnerships with two independent artists. These are the first solo NFT projects we are developing, which will contain unique digital art pieces that will be traded on OpenSea. Stay tuned for more info in the coming weeks.
Platforms such as NFT Kred have made it possible for brands and independent artists to create NFT event tickets and sell them on the open market. Making it easier than ever to plan a virtual event and use a blockchain-based ticketing system through NFTs.
Musicians like Kings of Leon have released their first NFT album, including special VIP perks for fans who acquired their “golden-ticket” NFT. This rewards NFT owners with a front-row seat to all future shows. Demonstrating the potential that NFTs offer in regards to improving ticketing systems.
Key Takeaways (TL:DR)
Point 1: A non-fungible token (NFT) is a unit of data on a digital ledger called a blockchain, where each NFT can represent a unique digital or physical item. The emergence of NFTs will have a positive impact on the loyalty scene.
Point 2: The top 3 use cases for NFTs are virtual events, arts/collectibles, and event tickets. The entertainment and arts industry can greatly benefit from this emerging trend. NFTs are quickly consolidating their spot in the mainstream, rare collectibles such as Beeple’s NFT art or the first digital house sold for $69 million and $500k respectively.
Point 3: The potential for NFTs is limitless, especially considering the positive effects it has on the arts/collectible market and the improvement it brings toward traditional ticketing systems.
Point 4: We are starting our own NFT journey this month, with two solo projects being released with independent artists, featuring digital art pieces that will be available on OpenSea.
All we can say is, get ready for more info and updates on our own NFT journey. Keep a close eye on our socials for updates on all projects.
NFTs can seem confusing at first but when breaking things down into fundamental concepts, it facilitates our understanding of the technology.
Therefore, we invite you to investigate more on the topic and gain a deeper understanding of NFTs and the awesome opportunities that come with this technology.
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