Many NFT collections offer good artwork, with projects viewing it as an important component. Only a few NFT projects are entirely art-based; most provide other benefits in the form of utilities.
All major NFT projects have a community on Discord accessible to anyone. Discord has become the most prominent app for community building and information sharing in the crypto and NFT space.
Some NFT projects have special channels only available to the holders of the NFT. These channels are managed by the collab.land bot, allowing a members-only community to provide additional benefits. Some of these are to facilitate free airdrops, provide specific project news, or allow holders to vote on project governance.
NFT projects could offer educational content for users in the form of investing, art classes, and special appearances by industry leaders.
Some projects have access to networking events, parties, or seminars as a holder. Top projects like Bored Ape Yacht Club and VeeFriends have real-life meetups for holders. There are VeeFriends NFTs that allow in-person access and mentorship from Gary Vee.
Famous and well-known people can launch NFTs where the holder gains signed merchandise or attend events with the founder.
Physical Items.
Some NFTs by artists allow people to obtain the physical version of the NFT. Flipkick is a company that works with artists to deliver NFTs linked to physical art. This space will evolve as NFTs become popular and artists realize the potential of NFTs and blockchains.
Some projects have physical merchandise associated with the NFTs. The infamous Bored Ape Yacht Club sells merchandise and allows NFT owners the right to create sellable merchandise with the NFT they own.
It's pretty standard for NFT projects to give holders additional NFTs and other rewards.
Bored Ape Yacht Club (BAYC)airdropped Bored Ape Kennel Club and Bored Ape Mutant Club NFT to its holders; these two new projects became valuable as the BAYC project grew.
The top-selling CryptoPunks NFTs were free on launch; anyone holding an Ethereum wallet could claim an NFT.
NFTs are closely linked to Blockchains as this technology enables NFTs to exist. Numerous blockchain platforms give away NFTs as airdrops. For example, Binance Smart Chain, a strong competitor to the Ethereum blockchain, has airdropped tokens.
Play-to-earn (P2E) game Axie Infinity facilitates the players to breed new in-game characters. In addition to using the characters in the game, they can be sold or rented, offering the holders the potential to earn additional income. Some non-P2E NFT projects allow the holders to breed and the creation of new NFTs.
Another project that allows breeding is CyberKongz to create BabyKongz. In addition to breeding, CyberKongz contains Kongz Island, a multi-estate concrete jungle built on Sandbox, and its own $banana token, which has contributed to CyberKongz becoming a quality NFT project.
Fractional Ownership of NFTs allows people to purchase a fraction of an NFT. An art NFT by a well-known artist could be split into many components and available for many people to buy shares.
Pak's NFT Artwork 'The Merge' is a well-known example. The NFT sold for over $90 million; it was split into over 312,000 units to ensure many people could buy a stake in the project.
Taking such an approach will ensure the NFT is easier to sell. An expensive NFT is limited to wealthy buyers; fractionation provides greater market access and an easier sale process in the future.
Financial gains are achieved with many NFT projects when the NFT is sold. Staking allows the NFT to be locked away into the project or another ecosystem to earn a passive income. Such projects are likely to have a greater appeal to investors.
The Metaverse is a trending subject; it will have a significant impact in the future. Offering activities involving the Metaverse is a utility that adds value. Decentraland and SandBox provide Metaverse opportunities that have contributed to their success. Projects providing artwork NFTs could present a Metaverse experience where individuals can view the art in a Metaverse-based museum.
In the current climate, utilities are an essential part of success. It's unnecessary to have an endless list of utilities, but the greater the number, the more the investors will benefit.
For the project to reach a favorable outcome and give the market confidence, it should have the utilities ready and available on launch. Such scenarios eliminate negative sentiments often seen following the launch.
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