You have undoubtedly heard of non-fungible tokens (NFTs) unless you've been sleeping underneath a rock. On the internet, NFTs have become all the rage, providing a unique opportunity for producers, artists, and developers.
The NFT subsector is a fast-growing subsector in the cryptocurrency and blockchain industry, with a slew of projects and tokens worth billions of dollars. NFTs aren't merely useful in terms of money. They're also groundbreakers in terms of branding.
CryptoPunks, the Bored Ape Yacht Club (BAYC), the Koala Intelligence Agency, Art Blocks, CyberKongz, and a slew of other projects are redefining how brands are built. The days of physical brand promotion, which helped corporations like Nike, Gucci, and others establish their followings, are being supplanted by a cult-like digital metaverse.
CryptoPunks and BAYC NFTs have built core enthusiast groups that are seldom found in mainstream companies.
For example, no one changes their profile image to a new pair of Nike sneakers or a Patek watch, no matter how desirable those items are. However, many individuals on Twitter have changed their profile images to avatars of their favorite NFT projects.
These thriving communities contribute to the increased value of NFTs. In certain regions of the United States, the most popular NFTs are now worth more than a small house. For example, CryptoPunks tokens, which are pixelated humanoid figures that were handed away for free in 2017, are currently worth at least $400,000.
Every successful NFT project employs a variety of brand-building tactics, many of which are comparable. These techniques have helped them build a thriving community, which has resulted in increased exposure and mainstream interest.
Despite the NFT sector's present popularity and worth, I believe there is still potential for development in terms of strategy and technology. The use of NFTs as access passes is becoming more common. When a person owns an NFT, he or she gains access to specific perks.
Perks range from being a member of an elite club to real-life benefits like having access to specific works or events, and for some, even access to tales. Scarcity is easily created by NFTs, which has increased the value of the assets. For example, CryptoPunks and BAYC both have only 10,000 NFTs, making anybody who possesses one a member of an elite club.
It not only makes the NFTs more appealing to others, but it also encourages their owners to flaunt them. BAYC's 10,000 NFTs have a variety of "traits" (visual qualities). Making a few hundred NFTs with 10,000 attributes or making a radical departure from the present standard would be food for thought for builders.
Before everything else, NFT ventures normally prioritize building a solid community. They employ tactics such as community participation, opinion polls, and additional rewards, among others.
Given the current worth of many NFT initiatives, their brand appeal will almost certainly grow over time, and they will be able to develop a metaverse as popular as Nike. Celebrities and sports figures are already showing interest in NFT initiatives. The NFT scene is being watched by even major businesses. Nike, for example, has a patent on CryptoKicks, while Coca-Cola, Taco Bell, and ASICS have all employed NFTs as part of their marketing tactics.
Similarly, NFT initiatives are already gaining traction in the media. For example, CryptoPunks just secured an agreement with United Talent Agency to represent the initiative on television, video games, and other platforms. As a result of art, fantastic marketing, and community development, NFT initiatives are already on their way to becoming worldwide brands.