Non-fungible tokens (NFT) are digital assets that represent a wide range of unique tangible and intangible items, from collectible sports cards to virtual real estate and even digital sneakers.
NFTs represent a new blockchain technology that could spawn many new business and philanthropic models. So far in February 2021, several NFT sales have garnered more than $1 million each. A recent report indicates this may just be the beginning as NFTs are set to gain more prominence in 2021. NonFungible, an analytics company, forecasts a bullish 2021 for the NFT industry.
NFTs didn’t just arrive on the scene, their advent could be traced back to 2018 when ERC-721, the dominant Ethereum-based NFT standard was created. NFTs popularity started soaring at the latter end of 2020. NFT sales soared by 200% to reach past $9 million in the second half of 2020 alone.
The year 2021 has been positive for NFTs as sales keep rising at an alarming rate with the value of highly-sought NFTs skyrocketing alongside. A Feb. 22 report indicates Cryptopunk sold one collectible for 550 ETH, nearly more than $1 million at the time of sale.
NFTs have the advantage of uniqueness, guarding against the creation and circulation of fake collectibles. Each NFT contains distinguishing information that makes it unique from any other NFT and easily verifiable. Unlike regular cryptocurrencies, NFTs cannot be directly exchanged with one another due to their peculiar nature.
Why NFTs Need To Embrace Innovative Brand Awareness
A NonFungible report gives the total market cap for project-based NFTs to be at $338 million at the end of 2020. Messari’s Mason Nystrom estimates that this figure could jump to over $1.3 billion in 2021, citing the adoption of NFT in the art industry and great potential in the gaming and collectible categories.
The analyst, however, stressed that critical infrastructure is expected to be launched in 2021. It remains to be seen if NFTs will be able to go beyond the ploy status they have held in the popular imagination since the launch of the popular CryptoKitties game.
There are questions about scalability and interoperability associated with ERC-721 and whether the world will embrace outside-the-box ideas to redefine value, property, and commerce.
Like all assets, supply and demand are the key market drivers of price. Due to the rarity of NFTs and the high demand for them from gamers, collectors and investors, people are often willing to pay big bucks for them. Some NFTs can also make their owners a lot of money.
As with the development of Bitcoin, the success or failure of NFTs will depend on the emergence of a passionate community and ecosystem around the technology. What’s interesting and challenging is that the very concept of community in the NFT world is very different from that observed in fungible tokens like Bitcoin.
Issues like these make people doubt which business model, including marketing strategy, can work for NFT. Blockchain technology has already found applications and many use cases in several areas of the marketing world. Similar to what the technology has already done for a large number of sectors, and the benefits are not only limited to consumers, but there are opportunities for businesses to benefit – from using blockchain technology to save money and increase their own profitability.
Brand awareness in the context of marketing allows people to know about your company, the quality of your products, services, and even your employees. When it comes to NFTs, the main thought that comes to mind is how to prioritize and expand communities. This can be absolutely necessary as the community that assigns value to NFT assets can often be quite narrow.
Blockchain marketing channels include Reddit, Facebook, Linkedin, and Twitter. Each site has a different audience that prefers a particular voice or tone. Reddit is one of the largest social media websites in the world. Reddit has communities that can have millions of members who are passionate about a particular topic. Understanding how to properly use these channels can help build an NFTs brand awareness.
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