Unless you live in a cave, you are almost certainly aware of a new phenomenon called non-fungible tokens (NFTs).
The media can’t get enough of this topic since last March, a South Carolina artist dubbed “Pixel Picasso” sold a digital collage for a staggering $69.3 million. Even more stunning is the fact that the creation can be freely copied and shared by anyone.
A lot of people are now getting rich on NFTs. I think there is no such person who has not seen this animation at least once. The Nyan Cat internet meme was also sold for an astounding $590,000.
And in December, nearly 29,000 collectors banded together to pay $91.8 million for a single digital work of art. It was the highest price ever paid for the work of a living artist in any medium.
And by the way, if you are planning to invest in NFTs, then take a closer look at the field of digital art, because some of the best-selling NFTs belong to digital artists.
What is NFT
A Non-Fungible Token (NFT) is a unique digital asset that acts as evidence of ownership of virtual or physical assets such as photos, videos, posts, etc. Each NFT is a one-of-a-kind cryptographic element that cannot be exchanged with others and stored on a digital ledger called a blockchain.
As in the situation with bitcoin, the topic of non-fungible tokens will become more and more attractive. Many will want to become the owner of a file that will grow in price. This is where marketers come into play.
Brands using NFT in their marketing
NFT marketing is an effective tool to improve relationships with your audience, increase customer engagement and increase brand awareness.
The strategy is that it allows its customers to own unique branded digital goods, which is a sure way to secure a place in their hearts. Essentially, the value of NFTs is determined by the hype, and when there is a massive launch, the hype cycle gets even stronger.
Gary Vee, CEO of VaynerMedia, an advertising agency for Fortune 100 clients, launched a project in May 2021 called VeeFriends, an NFT collection of 10,255 hand-drawn characters.
It looks like it’s just a bunch of doodles, but it’s not. Each token comes with a three-year VeeCon pass, a multi-day super conference with an outstanding line-up of speakers, a shared experience, and the opportunity to network with a self-sustaining community of like-minded people.
Snoop Dogg, the author of many popular and influential rap albums, announced the first NFT collection in April 2021 called “Journey with Dogg”, which mixed his memories from his early years with art inspired by the NFT movement and an original track called “NFT “.
The collection included eight limited editions and a separate collection called Snoop Dogg Coins, which were available for just one hour. One of his works, Death Row, sold for $108,000, an impressive record for a rapper.
Budweiser also saw the NFT as promising and introduced its first collection called “Budverse Cans Heritage Edition”. The set contains 1936 unique digital cans, each corresponding to the year the first Budweiser can was made.
Each NFT is unique and created using historical photographs, advertisements and artwork from Budweiser’s rich history. As a result, each NFT will act as a key to the Budverse, granting access to exclusive rewards and surprises.
NFT is also great for smaller content creators who want to monetize their skills and subscribers.
Take, for example, a novice blogger. He, being at the beginning of his journey, creates thousands of tokens for a symbolic price. As interest in this blogger grows, the value of tokens will also increase.
Becoming an influencer, he can ask for hundreds of thousands of dollars in exchange for a token that will allow his audience to access material from his personal life that was not previously known to the general public.
Ultimately, people are buying more than just the token itself. They invest in the value of a person and the idea that the demand for their tokens will increase over time.
It’s like selling stocks: as you or your brand becomes more valuable, the currency also becomes more valuable. The more people who are interested in your company, the more they will be able to participate in the community you develop or invest in you and the services you can offer.
Now is the best time for brands and marketers to implement new tactics. The hype around tokens has taken over the internet space, and consumers are ready to spend their money on assets they find valuable.
Will your company benefit from this exciting new trend? You won’t know until you try.