NFTs aren’t just for collectors and crypto-cool kids. NFTs hold an intense amount of potential for business success. Though the investment of buying NFTs is the talk of the town, today, let’s talk about something that isn’t as discussed within the crypto-community: the creation of NFTs and how their creation can benefit established business, generate new business, and become a talking point for years to come.
What is an NFT?
NFT Meaning, The Technicalities: NFT stands for non-fungible token. A non-fungible token is a digital object or file on the blockchain (a digital record of transactions) that cannot be duplicated. It is 100% unique in its existence.
Whatever makes up the NFT, be it a one-of-a-kind piece of art, a musician’s album, etc., (a topic we’ll dig much deeper into later), belongs solely to the person who purchases it.
Transactions for NFTs are verified through the blockchain, most often found on the Ethereum network since Ethereum supports the type of token that can hold data, making proof of ownership of an NFT easy, one of its greatest appeals.
NFT Meaning, The Truth: NFTs, at their core, are about art and ownership. The value of NFTs is similar to that of a trading card or other collectors’ items; its value varies.
How can something’s price vary so heavily? Like the Mona Lisa or a Shadowless Charizard, the price of these digital collector’s items grows with the demand.
The logistics are simple: you have one (or several) unreplicable pieces of work but numerous people who would like to possess this work. Thus, the price of the NFT in demand increases. There is no surefire investment in NFTs because, at the end of the day, the price will always be controlled solely by the demand of the buyers.
However, NFTs aren’t something to ignore, for their current usage and future potential are seemingly limitless.
Why Should Anyone Pay Attention to NFT crypto?
The one question that stunts a lot of people is the question of, “why?”
- Why do people want to buy this type of thing?
- Why is there so much talk about NFTs?
- Why was the artist Beeple able to sell a digital piece of art for $69 million?
- Why are people investing so much money into things they can’t even touch?
You don’t have to be hardcore into crypto to understand the value of potential. The “why” varies greatly, from the desire to own a piece of history to the longing to collect and showcase digital art. There is and always has been a demand for unique things. This time, those unique things just happen to exist digitally over physically.
Technology is growing rapidly, and NFTs only start the conversation of the value of things that exist solely in a digital landscape.
However, some companies are pushing the NFT envelope and combining digital collector’s items with exclusive, and sometimes tangible, offerings.
How Have NFTs Been Incorporated into Business?
Taco Bell Put Charity First in their NFT Campaign
Taco Bell created NFT gifs coined with the name NFTacoBells. These gifs weren’t just for giggles; it was part of a marketing strategy dedicated to raising money for the Taco Bell Foundation through the auctioning of the 25 NFTacoBells.
Taco Bell, being one of the most Gen-Z and Millennial targeted fast-food chains, took the opportunity to put something they cared about behind the fast-paced, still-evolving market of NFTs. This worked like a charm for Taco Bell, as their NFTacoBells sold for thousands of dollars apiece despite their auction starting at just a buck.
Were those buyers Taco Bell superfans looking to collect a piece of Taco Bell memorabilia? Possibly. Or did those buyers see the potential of possessing a limited edition piece from one of the largest fast-food chains as an iconic pop culture moment that could potentially make them more money in the future? Probably.
Kings of Leon Created the First-Ever NFT Album
The alt rock band, Kings of Leon, released the first ever NFT album in March of 2021. The band released the album with three different types of tokens, each containing different exclusive content. One version of the album included lifetime tickets to Kings of Leon shows, while another offered exclusive artwork.
What was the end goal for the Kings of Leon? To create a stronger relationship between the music and the people, similar to the excitement of the rock movement in the ‘60s – ‘80s, when exclusive album art and limited edition album features kept fans excited to be engaging with the music as well as the culture.
The growth of streaming services and direct-to-device consumption of music has taken some of the magic out of the entire music experience, allowing Kings of Leon to create that excitement again for fans with the help of NFTs.
Influencers, Especially Youtubers, are Capitalizing on NFTs
Some popular influencers are sharing NFTs with their audience to see what happens. There is no doubt that the response of influencers with millions of followers would be something to watch. NFT investments can’t be ignored, especially when they’re backed by ideas larger than just the artwork.
Logan Paul. Logan Paul created 3,000 NFTs that he auctioned off to his audience, featuring a cartoon version of himself holding Pokemon cards. Logan Paul’s audience isn’t necessarily the type to drop several thousand dollars on mere digital art. However, Paul created an incentive behind his NFTs with the promise that three lucky winners would win a trip to L.A. as well as a pack of first-edition Pokemon cards valued at $40,000.
Paul’s NFTs are another example of real-life promise attached to NFTs in the form of chance, similar to a high-value raffle.
H3H3 Productions. Though Ethan Klein of H3H3 originally started auctioning NFTs of himself and his wife, TeddyFresh owner, Hila Klein, along with his podcast crew “for the sake of the meme,” the tokens did turn a profit for the Youtuber. H3H3 created 250 tokens to commemorate the 5th anniversary of their viral video with one super special token that ended up selling for nearly $113k itself.
This special edition token is a prime example of a rarity driving people to buy.
Jack Dorsey. Jack Dorsey, the founder of Twitter, sold a literal piece of history as he auctioned off ownership of the first-ever tweet to grace the world of Twitter.com. The tweet sold for $2.9 million. This is an example of taking a moment in time, encapsulated with the help of the digital world, and allowing someone else to own it indefinitely.
How Can Your Business Utilize NFTs?
Here is what you need to think about as a business owner considering making bold moves within the crypto space, especially with NFTs:
- What can you create within the digital landscape that stands out and adds value to your potential customers?
- What things can you offer that encourage exclusivity?
- How can you position yourself to create an experience that can’t be replicated, driven by a strong desire to participate?
Creating NFTs around businesses puts business owners in the position to create urgency, exclusive offers, and limited edition items that can’t be found elsewhere.
Additionally, learning to utilize cryptocurrencies, blockchain, and unique items like NFTs is the best way to harness the potential of the future for your business (especially in terms of marketing).
Coming up with ideas that translate into something like an NFT can take a lot of creative thinking, but the main thing to remember is: the possibilities are endless.
With the right combination of ideas, art, and offerings, you can present to the world ideas that drive your sales and provide immense value to your customers.
To make it clear, here’s why you should consider utilizing NFTs in your business and marketing plans:
- The usage of NFTs shows people that you’re actively working to integrate the future into your business.
- You can create one-of-a-kind experiences for your audience.
- Like the Kings of Leon, you can continue building stronger relationships with your audience by catering to their desire for a more authentic connection.
- You can assert yourself as a problem-solver, forward-thinker, and overall creative being; all-important roles when creating or growing your business.
Gravity Junction and NFT Crypto
Gravity Junction is a boutique marketing firm near Atlanta that serves companies across the US. We have a firm belief in taking a tech-first approach to marketing and are forward-thinking in our marketing efforts. The utilization of new technologies is always at the top of our list, which is why we place so much value in learning, inspiring, and integrating new-wave marketing techniques for our clients. Our job is to realize potential and help businesses create the marketing moments that help them thrive. For more information, contact us today.