By March 2021, the concept of NFT was carving its way into mainstream media. The high profitability of NFT auctions from well-known artists is progressively becoming a hot topic. A well-known case was the auction of Mike Winkelmann, aka Beeple, who surpassed records on a $69’34 M sale. Want to know more about these popular assets?
News regarding blockchain and cryptos have surrounded us for over 10 years. Manav Gupta wrote a book titled “Blockchain for dummies” where you can test your knowledge about the technology or, if it’s the case, get started on it. The book illustrates the reader with the practical appliances that this technology enables us to achieve. Somehow, the only limit is our imagination. The structure decided by the developer will determine the utility of NFTs and cryptos as accessories to the service. The primer acts as a token with exclusive characteristics, while the latter is meant to be used as a trading asset.
The difference between these two concepts lies in their names. NFT stands for Non Fungible Tokens, in contrast with those fungible tokens commonly known as cryptos. Each NFT represents a unit of a unique digital asset that holds a determined value. Therefore, digital ownership is easily allocated among its holders. Almost a year after the boom in NFT market sale, the most profitable platform for NFT exchanges, OpenSea, initiated a new round of investments that listed the company at USD 13.000 M valuation after raising USD 300 M.
Art collectors nowadays hold part of their pieces in their crypto wallets as NFTs claim their role as part of the pop culture moment. One of the most famous NFT collections: “The Bored Ape Yacht Club” allows exclusive access to a club formed by owners of these digital apes. The +300.000 USD purchase on the Ether Blockchain includes membership next to buyers like Eminem.
NFTs are minted (as in launched on the first sale by the author) on different blockchains depending on the artist’s convenience. Even though Etherium’s has more adepts, this smart contract platform is costly, so any blockchain that works with the proper technology can be a niche for exclusive tokens.
Practical utilities for digital assets
Within this context, the fashion industry has stood out as one of the main industries finding diversified applications for NFTs. Since the beginning of 2021, fashion weeks’ worldwide have utilized NFTs through the collaboration of emerging digital artists and brands to bring forward new forms for experiencing haute couture. A collaboration between RTFKT and Fewocious sold 621 pairs of sneakers, worth USD 3.1M in revenues. A clip from a Gucci runway show, directed by Alessandro Michele, was sold for 25.000 USD. In addition, the luxury company Arianee is following the ape’s path by using the digital property as a credential for a privileged experience for the shows.
Maybe it’s too soon to ask if you already own digital clothes for your avatars, but other appliances like the usage of NFTs as ticket entrances are already established in runways. Within the entertainment industry, football is in the process of integrating NFTs into its formula. Teams and players can generate royalties thanks to NFTs that reproduce specific plays or actions.
The industry that has profited more from NFTs is the gaming industry, as it has particularly benefited from this brand new digital ownership.
We invite you to read our article “P2E games” to find out more information about the revolution that NFTs have led in video games. Firstly, NFT’s were only released by entrepreneur developers and artists who wanted a stake in a 24/7 marketplace, provider of endless royalties, token-gated unlocks, and community ownership. Nevertheless, the utility and possibilities that show are moving big companies next to them. Konagi launched the Castlevania Collection to commemorate the 25th anniversary of the game, while Ubisoft is developing a platform to exchange NFTs in their video games.
Owners can discover a personalized experience, they can also have access granted for a show or even, they can just stake and get rewards from their NFTs. Can you think of more alternatives for the NFT world?
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