Tapping into the power of blockchain, non-fungible tokens (NFTs) is paving a new way in the cryptocurrency community. As old trends and new strategies are forming around these digital tokens, NFTs are setting the stage for an entirely new part of the future economy.
In 2020, several NFT projects faced costly gas wars - priority gas auctions. Numerous bidders battled for their spot, losing Ether (ETH) due to failed purchases. However, in 2021, digital scarcity and utility fueled NFT excitement in booming economies, which was bolstered further by the efforts of influencers.
Further, in 2022, new NFTs projects tend to reveal new values that influence how projects build components and the components they create. This invention focuses on "strong communities" and the collectors' only services.
Let's examine these new developments and their possible impact on NFT investors in 2022.
As the NFT economy is becoming more industry-driven, projects are developing strategies for ensuring that their tokens remain valuable to investors. Among initiatives, the most recent trend involves instituting a "whitelist" model for token minting.
The whitelisting occurred due to a shift in coin strategy in response to the ongoing gas wars, which enraged many coin collectors and drove them to seek alternatives. Thus, what is the purpose of whitelisting in NFTs?
Whitelisting is a process that involves preparing a crypto wallet address that has been pre-approved for use in a future NFT mint. Whitelists are arranged and modeled for contributors who take an active role in project chores and activities and owners of certain groups who wish to engage in the game.
The benefit of this concept is that it attempts to identify potential community members who will offer value over time by awarding them a currency. Whitelisting makes it easier for investors and collectors to become lost in society's hype and the copy-and-paste farming black hole. While whitelisting can help reduce transaction failures, the community appears to be seeking a more value-based approach to access allocation.
While NFTs continue to rise, creative projects emerge around this burgeoning industry. As a result, NFTs have found a way to integrate with just about everything: fashion, art, games — and even music.
3LAU — pronounced "Blau" – sold the world's first digital tokenized album in less than 24 hours, making over $11.6 million in online sales. In addition, 3LAU broke through barriers by launching Royal.io, an NFT music platform that allows users to own their favorite melodies while collecting royalties and other perks. 3LAU, led by Founders Fund and Paradigm, raised an outstanding $16 million in its inaugural round and has already garnered the attention of prominent performers.
On January 11, 2022, Nas, the renowned American rapper, also released his first NFTs on the platform for two of his songs, "Rare" and "Ultra Black." Fans immediately flocked to Twitter to express their enthusiasm for the platform.
Additionally, a musician, who goes under the handle Latasha.eth on Twitter, also sold the NFT music video for her song "Gogo Wyne" for ETH $13.4207
NFTs have proven to be a viable asset class that continues to evolve. Fans of these collectible tokens will undoubtedly see the next wave of innovation in the space take shape. As the technology and tools behind these tokens improve, we can expect numerous new use cases and ways for tokens to interact with our everyday lives. It's an exciting time to be a part of this nascent industry, and we can't wait to see how it evolves.