Entering the Metaverse: Why Brands + Creators Should Mint Their Own NFTs
BY Margot Pessy
The term NFT has been in all the headlines lately, often in relation to massive amounts of money put into what only seems to be virtual possessions, or rights over internet sensations, such as Nyan cat gif. But it turns out there is way more to them.
Non-fungible tokens or NFTs are digital assets that run on Blockchain. The value of NFTs largely stems from the idea of scarcity. Collectors of NFTs can own unique digital assets like art, sports highlights, or songs which can be bought and sold on marketplaces. NFTs in part contain similar characteristics to traditional tangible collectible items, but NFTs have unlocked business possibilities that are far-reaching.
NFTS and the metaverse are now permitting brands and creators to sell products virtually.
We’ve prepared a visual guide to give you more information on what they truly are, how they actually work, and how involved they are in our virtual shifting society. From art to video games, this new virtual economy is slowly becoming THE new economy. But how can you benefit from NFTs and how are they slowly becoming so impactful in our society? You probably wonder what all this fuss is about and we are here to help.
“WE ARE IN THE MAKING OF EMERGING VIRTUAL WORLDS”
Between social media and video games, the new generation of millennials and Gen Z is the proof itself that the new world is the world online. Statistics show that these industries are going to keep on expanding and are ways to make profit out of them. But it is the whole virtual reality sphere that is developing and growing by the minute. New ways of using this virtual and augmented reality are being created every day and the infinite opportunities that go with it are endless.
So how are these emerging virtual worlds linked to NFTs?
Well, every aspect of this virtual reality is becoming an NFT. From the land to the images, sounds, and even characters. For instance, this summer is the launch of the GENIES NFT marketplace. Genies are the perfect example of the closeness between virtual and physical realities. They allow celebrities, but not only, to create a digital character that represents them online in the metaverse. They are then able to resell these characters on a marketplace for a determined amount based on the value placed on each of them. It is the whole concept of the NFT, meaning owning digital art or creation and placing a value and ownership not on something we can hold, but on a moment, one made virtually that can be easily and endlessly duplicated.
And more businesses and individuals are understanding this new market and its opportunities.
Who has been using NFT’s?
From GIFs to emojis to tweets, NFTs seem to be everywhere. From artists to gamers and brands, the creators of NFTs are in every aspect of our culture. NFTs are an attractive revenue stream for brands, as shown by all the brands jumping on the bandwagon of late. Taco Bell sold taco-themed GIFs and images (see one below)
And the NBA has NBA Topshots — a way of selling digital collectibles in the form of trading cards embedded with iconic moments from the game. Actual videos of games can now be owned by whoever decides to pay for it! With a plan to add virtual jewelry, accessories, and clothing that can be used across social media, the NBA is seeking to find ways to expand this revenue stream as far as it can go.
But how do NFTs actually work?
The majority of NFTs reside on Blockchain technology, more specifically the Ethereum cryptocurrency’s blockchain. It offers a core change for the financial world that is decentralized, transparent, and immutable.
Similar to Bitcoin, Ethereum’s blockchain creates permanent digital records of all transactions using that cryptocurrency. The creator of the NFT retains the copyright for it, as well as the right to duplicate it as many times as they want. Similar to physical collectibles, replications will not be as valuable as the original, and supply and demand will impact how much the NFT is worth.
NFTS: just a bubble ready to burst?
The sudden rise in the value of NFTs and a more recent pullback can make you think of similar historic market bubbles, such as the dot com/tech crash of 2000 and bank stocks and housing prices in 2008. So NFTs may be here to stay, but are they worth it? Bubbles always accompany new technology. NFTs are a new concept and can sometimes seem far-fetched, untrusted, and expensive. But just like anything, the more people involved, the more stability it will gain. We have to consider the potential benefits from it. Even if the current hype dies down, the technology will keep evolving and contribute to our daily lives. And some have already proved their impact and worth.
NFTs are a new journey to take part in, not just a trend. The point here is to not miss out on what could be the next lifetime opportunity for brands and creators. Now, we’re not saying put all your eggs in one basket and put all your investment into NFTs, but familiarize yourself with them and be a part of what could be the investment that leads you to the next step. After all, the first to declare something a bubble are outsiders who have missed out.
What are the upsides of NFTs for you?
- Deliver unique and personalized storytelling via collectible that is exclusive
- More deeply immersive experiences for the customers with a stronger customer community sense
- Open up a whole new revenue stream by selling goods in purely digital form or as a complement to a physical offering.
NFTs lend themselves well to premium brands that already thrive on scarcity. The luxury industry in particular is ahead of the game. According to Gucci, it’s “only a matter of time” before luxury brands release their own NFTs.
“Over time, NFTs will settle and the brands that experience the long-term benefits from this time of experimentation will be the ones that: get educated, experiment, collaborate and from that, truly understand how to create value.”
Where Kinestry can help
We provide the technology and expertise to enable you to join the Metaverse and use it to your advantage. On top of that, we deliver a human-centered design approach to build custom solutions for you to get ahead of your competitors
To know more about the opportunity of NFTs + the Metaverse provides and see how brands + creators are able to sell virtual products, you can download our visual guide.