Would you like legal evidence that shows you’re the proud owner of a viral video? Or how about buying Twitter® CEO Jack Dorsey’s first-ever tweet? (Going once, going twice … sold for $2.9 million). If that sounds like something you’d want, I have an offer for you.
What is an NFT?
Non-fungible tokens, or NFTs, are evidence proving that you own things in the virtual world. Just like you have laws and deeds to prove and protect ownership in the real world, NFTs prove the ownership of digital assets.
In plain economics, a fungible asset is something with units that can be interchanged, such as money.
A non-fungible asset means that the item has unique properties that cannot be interchanged with something else.
They have no shape. They have no form. They’re NFTs.
Why would you want to own an NFT?
NFTs are a part of the Ethereum blockchain, which is one of the most popular cryptocurrencies out there. What do these curious little things do? In a nutshell:
- NFTs give you ownership over something that can’t be copied.
- NFTs can be used to pay you a percentage every time the digital asset is sold or changes hands.
- NFTs make acquiring digital collectibles possible.
- NFTs make it easy to see who owns a particular digital asset.
- NFTs create interest in your brand and product.
- NFTs encourage interaction.
- NFTs increase unique brand awareness.
The Rising Market Value of NFTs
Nike recently patented special NFT shoes known as CryptoKicks. These shoes come with a unique identifier attached to the physical body of the shoe itself.
The creation of the NFTs and the limited production of the shoes have created a scarcity of CryptoKicks.
Every time someone purchases the shoes, the physical shoes and the associated NFT token have to be traded over as well. They carry an intrinsic sentimental value, much like works of art that can carry millions of dollars of worth and value.
Just as limited edition products and rare trading cards can carry a price because of their sentimental value and scarcity, so, too, do NFTs.
NFTs have unique marketability. They capitalize on the desire of people to own authentic, original works of art and to be associated with the prestige and honor that comes with such ownership.
NFTs are currently attached to digital art and virtual goods in video games but are speculated to enter real estate markets, brand licensing and event ticketing.
The online world has several platforms where content creators exchange goods and services with customers, with the platform acting as a middleman and taking their cut.
Since certain goods and services can be traded thousands of times, the question of copyright becomes paramount. NFTs are a viable candidate to show proof of ownership that content creators make every day on the internet. This gap is potentially worth billions and will only grow larger as more and more content sprouts up on the internet day after day.
So if this is the present state of NFTs, what does the future hold?
If you are interested in speaking about NFTs or anything else in the world of marketing, contact us today.
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RITTA is an award-winning New Jersey advertising agency. We build long-lasting client relationships with national and local premium brands. Contact us today for a free marketing consultation.
