NFTs are as stupid as they sound, but also a total gold mine

Alright, we’ve got to do it. We’ve got to talk about NFTs.

NFT debates have basically broken the internet over the last few years, with opinions ranging from “game-changing innovation” to “diabolical ponzi scheme.”

Nobody can agree! And that’s not surprising. Everything related to metaverse and XR (extended reality) innovation is rapidly changing the way we all approach life and business.

I want to help you cut through all that noisy bickering so you can understand…

• what NFTs really are,
• why they’re definitely as stupid as they sound,
• AND how they can make or save your business more money right now

What are they and what’s the big deal?

NFT stands for non-fungible token.

It's a unique digital identifier that cannot be copied, substituted, or subdivided. It accomplishes that uniqueness because it's recorded in a blockchain, meaning the authenticity can be certified - and therefore owned.

More simply put:

• an NFT proves airtight exclusive ownership of a digital asset.

And sure, it probably seems absolutely, mind-numbingly ridiculous that famous NFT deals run in the 8-figure range for works of art such as these…

But take off your skeptic’s hat for just a moment: is paying exorbitant amounts of money for seemingly unimportant, nonfunctional items really all that new?

Most Valuable Work of Art:
$862,000,000 (adj. inflation) // Mona Lisa

Most Valuable Movie Poster:
$690,000 // “Metropolis”

Most Valuable Baseball:
$3.05 Million // Mark McGwire 1998 70th Home Run Ball

Most Valuable Baseball Cards:
$3.1 million (Honus Wagner) and $2.88 million (Mickey Mantle)

Most Valuable Stamp:
$9.5 Million // 1856 1-Cent Magenta Stamp from British Guiana

According to Market Decipher’s “Collectibles Market and NFT Market Statistics Report, 2022–2032” (source):

the collectibles market in 2021 was estimated to be 
around $402 billion, 
with forecasts reaching 
$1 trillion by 2032.

Apparently human beings really like exclusive ownership of assets.

And NFTs are actually seamlessly integrating themselves into this market because of the innovative technology behind them.

There are countless reproductions of the Mona Lisa, Mickey Mantle’s baseball card, and… stamps… in the world. And no one even knows who owns the real versions!

But the owners know. And it was worth quite a bit of money to them.

But NFTs aren’t quite as simple as “create, sell, make millions, repeat.”

There are a few huge caveats we have to talk about.

The ecosystem (platforms such as OpenSea, Roblox, etc) is what enforces things such as…

• Recording ownership of an NFT on the blockchain
• Ensuring that the selling, trading, and buying of NFTs are completed properly
• Checking to see if an NFT has already been “minted” on the ecosystem
• Hosting the NFT’s digital product (e.g. the jpeg, 3D model, video file, etc.)

So yes, you can quite literally just copy an NFT with *Ctrl-C* and possess the same digital asset as the NFT owner. But having a “digital copy” isn’t the point. Being the owner is the point.

You can also waltz into the Louvre with your DSLR, take a picture of the Mona Lisa, and print it out on high-quality canvas. But that doesn’t mean you can sell it for $908 million.

Here’s the takeaway: 
the ecosystem your NFTs live on is extremely important, and they’re not all created equally. You have to choose wisely.

Here are some areas where you’ll want to focus some quick research to determine the quality of an NFT marketplace or ecosystem (luckily, there will be NO shortage of thorough internet opinions about all of this):

• What is the density of users vs items in the marketplace?
• How easy is trading?
• How much royalty is paid back to the original creator?
• Is the ecosystem known for pump-and-dump schemes?
• How long are individuals generally holding onto their NFTs?

So how can NFTs make or save your business money right now?

Just as the internet was full of mostly dumb games and rude jokes when it was first created, NFTs are following a similar story arc.

But that doesn’t mean your business should stay away from them. In fact, now is the time to jump in.

Right now, games like Fortnight, Roblox, etc have extremely rare collectible items for purchase that can then be used in gameplay. Those collectible items are (obviously) meaningless outside of the game.

Fortnite made over $5 billion selling avatars and collectible items that cannot be used in any other game or platform or real world: low supply, high demand… you know how it works.

Now imagine that one of those rare collectibles could make its way out of the game’s boundaries? What if owners could flaunt it in any game they played?

That’s the promise of the metaverse:
an interconnected virtual world where users effortlessly and seamlessly move between environments.

A company called OpenSea has an open API that allows any game developer to connect with it, providing owners of digital items such as 3D art the ability to bring it to any game they want. NFTs are only going to get more valuable and more desirable.

What’s the bottom line (that will add to YOUR bottom line)?

Exclusive ownership of rare things has always mattered to people, and NFTs facilitate that in our modern world.

Is there anything about your business that…

• evokes nostalgia related to your brand
• has found a “cult following”
• represents a significant or historical moment
• went viral on a social media platform
• can be worn as a “skin” or used in an online game or space

Turn it into a digital asset and create an NFT to provide someone (or a limited number of someones) exclusive ownership that they’ll be proud of.

You can even use that proof of ownership as an access token to special communities and events, or VIP perks of some kind.

NFTs are quickly becoming an important factor in digital commerce and personal expression — don’t miss out on the early stages because it still seems foreign!

Do you need further guidance on how to navigate this for your business specifically? DM me on LinkedIn and we can chat!