Fintech Digest

4 New Ways Your Business Can Take Advantage of NFT Gold Rush

The NFT market can be confusing for those who don't belong to the geek community. And though the NFT market is now going through times that are not the best, the collectibles market still demonstrates rapid growth. Every month 250,000 people trade NFTs on OpenSea, the internet's most popular NFT marketplace.

We believe digital assets aren't just for collectors or investors, who harbor hopes of monetizing the acquisition in the future, they can be used to benefit businesses, as well. And we know how to do it.

Why consider creating NFT for your business?

Let's skip the part where we explain what NFT is and go straight to the part about why and what kind of businesses can use it. 

Creating another source of income is the most obvious and compelling reason to enter the NFT market. With so-called «smart contracts» on the blockchain business can take advantage of the secondary market. It’s called NFT royalties.

The first NFT owner gets a percentage of the sale price each time his NFT creation is sold on a marketplace. Even if your NFT is released and handed out to people for free.

Your business can also use NFT for common good. Smart contracts may include a clause about sharing revenue with any charity organization or notable cause you want to support.

Joining the NFT gold rush also allows you to reach a new audience and build a community around your brand. Start with making a community portfolio and end up with letting your community have exclusive access to future releases, events, content, and whatnot.

How to use NFT for your business?

Create NFTs tied to physical products

In the digital-to-digital world, NFTs are tied to fellow digital assets. But they can be tied to physical goods as well.

With CryptoKicks, Nike allows its clients to receive a digital pair of sneakers after purchasing the actual item. And Samsung has launched an electronic version of its flagship 837X store on the Decentraland platform. The virtual store replicated its physical prototype, located in Manhattan, New York. This list could go on.

After the retailers, fast food has joined the ride. The fast-food giant McDonald's is opening a virtual restaurant featuring home delivery. Now, If you get hungry during your meta-verse trip, you can place an order without removing VR glasses and then get them in the real world.

Tying digital assets to physical goods and vice versa, eCommerce firms get a chance to increase earnings. Moreover, because NFTs are inexpensive to produce, the profits can be enormous and almost endless, we'd say.

Imagine a collectible figure that sells today and then, twenty years later, resold on eBay for $100,000. The seller isn't involved in the secondary transaction, but he does with NFT and the blockchain. Every time an item sells, the brand participates in the recurrent transaction.

Furthermore, smart-contract drafting may enable NFT developers to profit from future item sales. If desired, a company can lay a claim on a portion of future earnings and encode the capability into the NFT.

Creating a trading platform for NFT

Why would someone create a brand new trading platform if there’s already some, you may ask. OpenSea, SuperRare, Rarible, NiftyGateway — these platforms rule the NFT-market.

However, most NFTs commercialize digital artworks — from digital copies of actual paintings to memes. On the OpenSea platform, for example, you may buy, sell, and send photographs, movies, GIFs, and music.

There are also Gaming NTF Marketplaces and Sports NFT Marketplaces where you can buy a sword or cards with favorite sportspeople.

But the NFT market is quite beyond selling memes or art. It is expanding rapidly into new niches, including real estate, investments, logistics, cybersecurity. For instance, through real estate NFT marketplaces investors and buyers could sell, manage, and acquire properties.

This solution is much safer than the existing ones. Any harmful fraudsters' activities are excluded since everything is encrypted and arranged in a distributed ledger that operates on a consensus method.

Businesses need to identify platform goals and then successfully match them with the blockchain and the token standard.

Community building (HR purposes included)

Creating an NFT community around your brand is critical at the very beginning. A strong community not only creates the framework for a successful NFTs sale, but it may also draw additional attention to your account. Furthermore, the community-first approach enables you to create a strong network of relationships across the whole blockchain ecosystem.

To clarify this, let's use a non-crypto example. The fans who watch matches live (it means they go to the stadium and wear a branded T-shirt) are more involved in what is taking place than the TV audience. 

That is exactly what NFTs do. It's the equivalent of a brand selling you a shirt and urging you to join their squad. If you own a token, you're a part of the team. You have a stake in both the ups and downs when the token appreciates and when it tanks.

In Asquad, we use NFT as a tribute to our teammates. We turned their names into celestial bodies, using the best of Earth and Space forms, and sent them wandering the boundless expanse of space.

Blockchain gaming development

Inspired by the De-Fi ecosystem, the game ecosystem that runs on the blockchain has evolved to something called GameFi.

GameFi is based on the Play-to-Earn model, according to which players can make money when they progress within a certain game. 

Game projects like this run on a distributed blockchain registry. It means that all objects like characters, land, artifacts, gold, weapons, and armor that circulate within the game space fully belong to them.

These objects are also created in the form of non-exchangeable tokens (NFT), which, in other words, indicates their affiliation to digital assets that can be bought and sold within and outside the game.

The decision of what cryptocurrency will be used for payments within the project is up to the creators. As a rule, they stick to creating their own token.

Those companies who seamlessly weave the crypto-economy into an interesting gameplay, as implemented in the cult MMO EVE Online, or create an ultra-flexible sandbox, where players can build ecosystems and entertain themselves, as in Minecraft, can achieve truly impressive results.

Wrapping up:

NFTs provide businesses with a new method to establish and communicate with their audience without having to rely on the platform's algorithms or organic reach from the feed.

The dawn of web 3.0 has not yet come, so you still have time to prepare a strategy for including web 3 into your marketing strategy.