What’s the full potential of NFTs?
Because public attention is always moving from one trend to the next, the unearthly increase in popularity of NFTs that we've been witnessing will inevitably fade. This provides us in the business with a fantastic chance to investigate the several doors that NFTs will open for artists, IP owners, and consumers alike.
NFTs are growing as a legitimate marketing channel for businesses trying to expand and reach new customers. Creators will be able to reach an increasing number of people as NFTs attain public recognition beyond the first wave. Platforms such as Telegram, Twitch, and Discord have already proved the numerous methods to build and maintain a fan following.
NFTs can serve as custodians of intellectual property rights by serving as digital certifications of authenticity. The NFT market will eventually resemble the music publishing model, in which music publishers and composers build libraries of copyrights that provide a steady supply of income in perpetuity, driving long-term worth. On the horizon is the development of a management platform that will allow IP owners to oversee NFT transactions (think business intelligence, analytics, and CRM capabilities).
NFTs also function as digital passports, radically transforming the fan experience and rethinking the concept of the fan club for artists, companies, and intellectual property owners. After the COVID-19 epidemic, fans will be able to utilize their NFT portfolio to access behind-the-scenes deals, VIP events, and unique meet-and-greets. Given that digital assets, like real things, are founded on supply and demand economic principles, scarcity will boost value and increase the number of users and digital natives. Furthermore, proximity-based NFTs will drive both physical and online experiences.
The future of NFTs
As the business continues to emphasize fans and consumers, the future of NFTs looks brighter. We must divert the focus of the media and customers away from six- and seven-figure major sales statistics and toward creating true value by injecting significant utility into NFTs. We must focus on creating intelligent, strategic collections of NFTs that will gain in value over time as the utility of the NFTs obtained becomes clear to fans.
The business is fast transitioning from NFT 1.0 — NFTs as digital collectibles — to NFT 2.0 — NFTs as storytelling vehicles. Stoner Cats is only the tip of the iceberg in terms of using NFTs as access tokens to see unique video material. What should interests us even more is the use of NFTs as storytelling vehicles, in which NFTs are fueled by deep gamification tactics and community layers and become important components of a multi-platform, transmedia storytelling experience.
NFTs will serve as a fan's permanent passport and a key to accessing unique experiences both online and offline. This will happen when NFT collections grow smarter, more strategic, and more gamified, delivering substantial value and sustaining long-term fan engagement. People will grow more educated in their thinking about NFTs and the eventual benefit NFTs provide for fans and IP owners alike as the sector evolves. As fans and customers attempt to better comprehend the "so what" component underlying NFTs, the utility will become increasingly crucial. So now that I have this NFT, what can it do for me? What advantages does it provide in my life? What value do I gain by owning this NFT and how long will this value last?
As key innovators in the sector shift our attention to community, game mechanics, and narrative storytelling to produce genuine value and usefulness from the NFTs we bring to market, the industry will continue to make significant advances forward.