Over the past year, NFTs (Non-Fungible Tokens) have emerged from crypto-obscurity to becoming one of the most popular and accessible digital platforms for brands, consumers, and celebrities alike. Since January alone, the NFT industry has netted over $400 million in sales with social conversation increasing by 329%.
NFTs function as digital assets that can be collected, traded, and redeemed, allowing creators to foster new and unique touchpoints with their audience. When executed correctly, NFTs offer brands an opportunity to strengthen customer loyalty while fostering long-term equity among both prospective and current consumers.
Contributing to the popularity is the fact that NFTs can be bought, sold, and resold on secondary markets, presenting an investment vehicle for consumers, similar to buying a piece of art, which can accrue value over time. This perfectly encompasses the growing interest in the gamification of asset collection and investment.
Currently, the excitement around NFTs is partly due to the “new-kid-on-the-block” mentality, with proactive brands and celebrities looking to be early adopters, serving as a catalyst for the industry at large. However, NFTs are here to stay; brands who can take the necessary time to develop and execute correctly will be the ones to successfully leverage the token for long term value. Still, there are many questions about how NFTs work that must be answered before creating your first NFT.