NFTs hit the headlines in 2021. In the early part of the year, Jack Dorsey, the CEO of Twitter, sold his first-ever tweet as an NFT for over $2.9 million. The digital artist Beeple sold an NFT collage for around $69 million, and a whole host of others sold their NFTs for fees well into six figures and beyond.
The term 'NFT' was named world of the year by Collins Dictionary and many people jumped into the craze that's NFTs; they could see the enormous potential of NFTs.
Much of the positives behind NFTs are well documented. These include proof of ownership, authenticity, transferability, and security. But what are some other advantages?
NFTs have spawned a new industry. For an NFT project to go to the market, it requires people to carry out tasks ranging from creating the artwork, developers to deploy the NFTs onto the blockchain, and marketing staff to execute the plan to sell the collection. All these tasks enable people to earn money plowed back into the economy.
People do not need much experience to become involved in this new industry. Some established industries may seek years of experience, but such people do not exist in the NFT space. This easy-entry enables people with a small exposure to NFTs to leverage their existing skills and take up well-paid roles.
People with an entrepreneurial ethos can start up businesses involving NFTs. They can begin NFT projects, develop technology to enhance the ever-evolving space, and create marketplaces.
NFTs have seen many billion-dollar corporations enter the NFT space. They range from Adidas, Samsung, Coca-Cola, Gucci, and many more, opening up another avenue to conduct business. Until now, the only mode of operation has been selling physical goods online and offline.
NFTs allow these established organizations to leverage their current popularity to sell digital assets and develop Metaverse-related activities to increase their offering. Organizations like Gucci create Metaverses where people can enter, enjoy a virtual reality experience, and purchase items for their virtual world. It's possible to buy gadgets, furniture, clothing, vehicles, and much more. What is available in the real world will become available to purchase for use in virtual space.
NFT and blockchain technology opens up marketing opportunities. Giving away NFTs can help gain new customers, add customer loyalty, and drive new marketing opportunities. It enables new products and enhancements launches. For instance, hotels can offer loyalty schemes for people holding their NFTs.
NFTs have offered another avenue for investors. The emergence of NFTs has seen people buying NFTs as investment possibilities in the hope of increasing in price. Many traders enter the space hoping for quick flips for huge returns. While there is no guarantee of NFTs going up in price, there are many success stories. Top projects such as Azuki, Doodles, and World Of Women have exceeded their initial mint price. Anyone investing in such projects has seen a significant return on their initial investment. These stories have led people to believe NFTs are the modern gold rush. The evolution of NFTs is fast; what was on-trend a few months ago becomes no longer desired. It's best to stay tuned to the latest news.
Investing in NFTs aside, the technology behind NFTs opens the door to other investment opportunities. Organizations leading the way in the NFT world have sound potential. Companies developing the Metaverse, NFT marketplaces, and crypto coins used to purchase NFTs are excellent bets. For example, Matic, the native tokens of Polygon, has gone up in price. From a few cents at the start of the year to almost $3 by the end of 2021. Mana, the token behind Decentraland, which develops virtual land, has seen significant increases in the last five months.
Note that there are no guarantees in any investment, and people should always do their research before investing.
NFTs are revolutionizing the world. The Internet in Web 1 and Web 2 changed people's communication and spending habits. NFTs are the Web 3 version of the Internet; it's likely to have a more significant effect than previous versions. NFTs and blockchain technology are closely intertwined and open the door for positive financial and societal change. The world is likely to see more benefits as the months pass by.