Buyers purchased approximately $6 billion of NFTs in August 2021. Profiting from this developing industry demands a proactive and well-thought-out strategy.
- What Does NFT Mean?
- Examples Of NFTs
- General Facts AboutThe NFT Marketplace
- Profiting From NFTs
- Lighten Your Customers' Entry Blocks
- Uncover What Your Customers Love About Your Products
- Collaborate With NFT Industry Experts
- Identify the Ideal Market For Your NFT
The organizational industry has yet to see a technological advance with the speed and breadth of the non-fungible token (NFT). The NFT market continues to develop at an exponential pace, seemingly out of nowhere.
According to DappRadar's Q3 Industry Report, buyers purchased approximately $6 billion on NFTs in August 2021. Interestingly, none of the preceding seven months had seen NFT sales reach $2 billion.
While NFTs tires to blockchain and cryptocurrency, their inherent distinctiveness remains their primary difference. This non-fungible feature eventually enables NFTs to revolutionise a wide variety of industries and business processes.
What Does NFT Mean?
The primary aspects of understanding the Non-Fungible Token are the characteristics that make it unique. An essential element of an NFT is that, in its initial state, it comprises a token with specific values attached to it. NFTs includes tracks, photographs, videos, games, apps and other pieces of art.
From the onset, every one of its tokens is different since they are based on original identification codes and metadata with properties that are not reproducible with any other token. However, here are the features that make NFTs stand out:
- Indivisibility: The tokens cannot be (readily) divided into tiny denominations.
- Authenticity: Every token is authentic and distinguishable because each belongs to someone who can quickly identify and verify it.
- Non-interoperability: NFTs are not the same as other popular cryptocurrencies like Bitcoin and Ether. Thus, it is not easy to exchange.
- Tradability: There are various cryptocurrency exchanges for people to trade tokens. With almost endless capability, they can enjoy improved trading systems.
- Interaction with various ecosystems: Creating a new, non-fungible token based on an existing and approved standard like ERC 721 and ERC 1155 makes it easy for users to transfer items that you have across multiple platforms.
- Liquidity is the tendency of an asset to be bought or sold quickly. Due to its non-fungibility, users can easily trade NFTs at any time. This high liquidity makes them attractive to many customers who might want to buy and sell NFTs as they please.
- Programmability. To many, non-fungibles can seem like complicated concepts involving forging and creating items that require extra work, such as crafting. This niche has endless opportunities and possibilities to develop new types of assets or contracts on the fly while at the same time offering a great creative space for people to get involved with.
- Scarcity. Programmers can enforce features such as security, and user preferences can't be altered because they're programmed in.
Examples Of NFTs
Every non-fungible token is a 100% unique digital asset with specific metadata. Plenty of artists and collectors have the opportunity to join in on e-commerce by tokenizing their goods. NFT marketplaces functions as either regular stores or auction platforms and, in many cases, makes trading more accessible than ever before. Below we'll explore some examples:
- In-game item
- Original digital piece of art
- Music track
- Digital collectable
- Unique pair of shoes
- NFT art app
- Essay/Creative writing
These are great examples of non-fungible tokens. Consumers that shop for specific goods can find what they're looking for because there is a solid marketplace to search through.
Now, let us guide you to success in the NFT marketplace.
General Facts About the NFT Marketplace
While some non-fungible marketplaces avoid minting fees, others accept only specific cryptocurrencies and run on different blockchain platforms. They all have their pros and cons--and they're far from all being the same thing. The main categories of NFT marketplace platforms include universal NFT websites that allow users to buy and sell non-fungible tokens" as well as niche peer-to-peer platforms that only feature a specific type of non-fungible token.
Many NFT marketplaces popped up in 2021, and there are excellent chances for collectors to build collections because the supply is now easily trackable, allowing them to engage with other collectors. In addition, these platforms set a precedent for those who want to develop an NFT marketplace.
Profiting From Your NFTs
NFT tokenised digital art, gaming assets, and music have generated considerable interest and revenues, the technology also holds the promise of revolutionising various business areas, including healthcare, banking, and supply chain management.
Businesses have an unlimited number of ways to incorporate NFT capabilities into their goods and services.
Profiting from this developing industry demands a proactive and well-thought-out strategy, especially given the relative freshness of NFT technology, much alone blockchain.
After all, the talent pool for developers with blockchain and NFT expertise is relatively tiny.
Finally, it is vital to make it simple for your clients to adopt the NFT idea. Collaborating with established organisations in this field improves your chances of success.
To assist your firm in successfully entering the NFT market, take a look at these insightful findings.
1. Lighten Your Customers' Entry Blocks
Any brand entering the NFT industry wants to create a solid first impression. After all, a successful release has a high probability of rapidly spreading virally. Perhaps their competitors have already launched their NFTs?
While this is a relatively new area loaded with possibilities, it is a somewhat competitive market at the moment.
Organisations of all sizes should make it simple for their consumers to purchase NFTs. It's critical not to presume that your consumer base is already familiar with bitcoin and cryptocurrencies. If your target market is primarily elderly, decreasing the barrier to acceptance of NFTs becomes crucial.
Using a custodial wallet becomes an intelligent solution for your development team in this case. It enables users to acquire an NFT with a simple credit card transaction.
This strategy avoids the majority of the complexities associated with NFT shopping.
Naturally, given the NFT's relative newness, some consumers may be hesitant about purchasing them through a largely unknown approach. Credit cards provide a sense of security and contribute to the development of trust.
Therefore, ensure that your team follows this procedure, as it gives the highest chance for a successful launch.
2. Discover What Your Customers Love About Your Products
Before introducing an NFT into one of your company's products, research what your customers enjoy about your product and brand.
- Is it the product's scarcity?
- Is it trendy in today's market?
- Perhaps it appeals to the luxury market?
Whatever the cause, identifying these prior purchase motivators before launching your NFT is critical. Utilise this study to guide your NFT release's launch strategy.
Notably, this information allows you to target prospective purchasers with the same values and demographics as your present consumers.
Additionally, it assists your team in developing a marketing plan for the NFT launch. Finally, NFTs provide your business with the opportunity to enhance your brand's presence in the marketplace significantly.
Therefore, do not skimp on market research to effectively target the market for your NFTs. Additionally, ensure that your marketing staff is familiar with the NFT idea and its potential for company development.
3. Collaborate With NFTs Industry Experts
Any business new to NFTs should consider cooperating with experienced companies. This strategy enables your business to concentrate on its core competencies while leaving the technical and marketing elements of NFTs to the experts.
Tedbree has extensive expertise in developing blockchain and NFT applications. This encompasses everything from the technology that underpins cryptocurrencies to the development of effective tactics for NFT launches.
While bringing a highly skilled team in-house might be challenging, we harness the most outstanding people from across the globe and support them with a full-stack managed service that includes workflows, frameworks, and processes. Bear in mind that the NFT spacetime is near to the speed of light.
In this context, attempting to launch NFTs and the accompanying technical and marketing issues without the guidance of an experienced advisor is almost certain to fail.
4. Identify the Ideal Market For Your NFTs
Choosing the right market for your NFT is the last piece of the puzzle to solve before launching. This is another area in which research is necessary.
Instead of just hoping for the best, analyse where your top consumers are most likely to interact.
That latter haphazard method prevents your company from obtaining the necessary data or value to assess the NFT's genuine effect accurately. While your firm may claim to have issued an NFT, this may have a detrimental effect on the impact of future releases.
In this case, taking a slower, more cautious approach remains the prudent course of action. By slowing down the release cycle, you may identify an initial set of around 50 power users among your client base. Provide them with unique details on the next NFT release.
Additionally, consider giving additional incentives in conjunction with the NFT to aid in early sales and valuations. As part of the release, an exclusive meeting with your CEO or any such reward makes sense.
In the end, an NFT helps to foster the development of secondary marketplaces that fuel client involvement.
Forging a community around your brand and developing a market around it remains a good aim for your company's initial NFT.
Consider it an income source in itself.