Breaking news! Meta just announced that Instagram will begin testing a “digital collectibles” feature that allows creators to share their NFTs on the platform. This is amazing news for business owners and content creators but for those that are unfamiliar with the world of NFT’s, this news might not seem as exciting. Since NFT’s are slowly taking over the business world, we decided to give you a crash course on NFT investing and NFT tokens so that you can bring your business into the metaverse. Every other day we hear of companies like Nike, Coca Cola & Louis Vuitton launching, investing or selling their own NFTs. But why? What’s the appeal?
So What is An NFT, Exactly?
For starters NFT stands for “Non Fungible Tokens”. Simply put, NFT Tokens are one of a kind digital assets that represent real world objects that can be bought and sold online. An NFT can take the form of anything from music and art pieces to video clips and even tweets!
NFT Tokens are somewhat akin to cryptocurrencies in that NFT Tokens are both a part of the blockchain. The main difference is that unlike cryptocurrencies, NFT Tokens have distinct data codes that make them 100% unique from each other. So no two NFT Tokens are traded or exchanged for the exact same value. When it comes to cryptocurrencies, on the other hand, one Bitcoin is equal to one Bitcoin. The main thing to remember is NFT Tokens are unique, one of a kind digital assets that can be bought or sold for real money. For example, Twitter’s founder Jack Dorsey turned his first tweet into an NFT Token and sold it for $2.9 Million Dollars.
Big Businesses Are Cashing in on NFT Tokens
NFT Tokens allow businesses to potentially reach a new younger, more tech savvy audience. Doing so allows companies to connect with their buyers and create opportunities for joint revenue creation. Pepsi is a great example of this as they are offering 1,893 different NFT Tokens which are unique digital images to celebrate the year of their founding and to pay homage to their love for music. It’s not just the big businesses cashing in, though. Celebrities like Madonna, Emily Ratajkowski, Snoop Dogg, Lindsay Lohan, and Paris Hilton have stepped on the NFT bandwagon and created quirky digital assets - some of which have sold for thousands of dollars!
Expand Your Brand’s Digital Footprint With NFT’s
Big companies and celebrities have learned to leverage NFT Tokens to their advantage and you can too! The opportunity to create, sell, and buy digital assets is available to everyone. So now pretty much every creator has a new potential revenue stream that was not available to them previously. So what makes NFT’s a unique revenue stream? The secret sauce lies in the way NFT tokens are sold.
For example, if you sell an NFT Token of a stick figure or your brand’s logo, you can attach a stipulation to the NFT Token ensuring that every time it’s re-sold, you get a percentage of every subsequent sale.
Since NFT Tokens are part of the blockchain, every transaction is tracked. If said NFT Token rises in value, the original seller/artist can continue to make money. This is unlike selling traditional assets (like art) where the original owner would lose any and all revenue on all future sales on the item sold.
This means that NFT Tokens can potentially have a seismic impact on the financial futures of businesses and artists. Companies are now able to offer digital collectibles, brands and creators have a new way to connect with their followers, and the revenue potential for these assets is long term.
It is certainly hard to say what the actual future of NFT Tokens holds and it is important to stay informed on the latest trends in order to create and execute a successful NFT strategy. Remember that like all assets, NFT Tokens are also subject to depreciation. However, NFT Tokens have generated over $24 Billion Dollars in 2021 alone, so, it’s clear that companies will continue to explore them further.
The NFT model has created so many opportunities for businesses- both big and small. Entrepreneurs should not shy away from pivoting their business strategy to stay in touch with technological advancements and the latest digital trends. The concept of digital assets is relatively new so it is not unusual for business owners to be wary of it. Don’t be afraid to embrace change. A great way to start your NFT journey is to find an experienced mentor who can guide you through it. MicroMentor can help connect you with a business mentor online for free! If you’re not sure about the benefits of mentorship, check out this Guide to Business Mentoring.
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