You must be questioning this yourself – What is NFT? Over the past few months, you might have came through about crazy NFT art sales, for example: Local Malaysian NFT Artist: Red Hong Yi’s NFT art has sold for RM325, 000 – a design of doge coin to the moon on a paper money. Another example of exploding NFT arts – CryptoPunks: One of the earliest NFT art started in June 2017 with 10,000 unqiue generated characters NFT collections, which now worth more than millions.
How are these people earning such crazy amount of money over NFT?
Credit to CryptoPunk Official
Introduction – What is NFT?
NFT stands for – Non Fungible Token. Meaning that it is more or less that it’s unique and can’t be replaced with something else, on top of that it is unique blockchain coded – one of it’s kind. For example, the art piece of famous Mona Lisa is fungible — on in the world that can’t be replaced, and you’ll have exactly the same thing. Another example is, one-of-a-kind trading card, first edition of holographic charizard which value of $24,000 now! It is only non-fungible once you traded it for a different cards/arts, you’d get something completely different depends on the value of it.
What is NFT – How Do NFT Works?
Almost out of 80% of NFT in the world, most of them are part of the Ethereum blockchain. Ethereum is a cryptocurrency, like bitcoin, dogecoin and more. The difference is – Ethereum blockchain do supports creation of NFTs through their smart contracts, which store extra information & safely that makes them work differently & uniquely. In conclusion, NFT works differently compare to all well know cryptocurrencies we known so far but work using the same blockchain technology.
Credit to BoredApeYacthClub Official
Why NFT is such a Hype? Benefits of NFT
To further understands about the current hype of NFT around the world, we must first learn abou the benefits of NFT. How does NFT as a digital collectible versus physical collectible that been around for decades against each other in these rapid growing of digital age?
Overview of NFT’s Benefits: Physical Collectibles vs NFT Digital Collectibles
Flex – The importance of showing off in human society.
As society goes today, rich like to flex with their collectible: Majority companies like Facebook branding – Meta going towards AR technology where in future not too long, you will able to flex your digital assets as we connected online.
Yes, most NFT collectors will flex with their peers that they own NFT such as CryptoPunk or BoredApeYacthClub! Besides that, it also work like any other assets they own in the real world like property, shares and more, where you buy it and hope that the value of it goes up one day, so you can sell it for a profit. As awful as they sound, yes this is why rich are getting richer and flexing it! Buying NFT also usually gets you some basic usage rights, like being able to post the image online or set it as your profile picture. Plus, of course, there are bragging rights that you own the art, with a blockchain entry to back it up.
Real World Community/Social Club – Access to tons of VIP benefits & Meet New Peoples
One of the obvious benefits of buying NFT is it lets you access to the community that build by the creator themself which you believe in! Normally such community are given some exclusive benefits for holding creator’s/artist’s NFT in long run. For example, BoredApeYacthClub created first ever yacth club events – Ape Fest 2021 for their community!
Royalty – Content Creators Enhoy Royalty Fees Each Time NFT being SOLD
As a traditional artist – You don’t earn royalties from the art pieces you sell but as a digital artist using NFT, you earn royalties every time your art pieces is sold digitaly!
First off: NFT blockchain technology had changed a lots for digital content creators out there. For instance, you might be interested in NFTs because it gives you a way to sell your master art piece which otherwise might not be much of a market for in real world. If you come up with a really cool digital stickers, character designs, music, art works, what are you going to do? Sell it on craiglist, ebay, shopee, Lazada and more? Not Possible!
Besides that, NFTs have a major breakthrough feature: That you can enable that will pay you a percentage every time NFT is sold or transfer ownerships, making sure that if your work gets super popular and balloons in value, you’ll get more benefits in long run – passive income!
Future Air Drop – New Collection Dropping Notice – FOMO Marketing
By owning the NFT collection from your favourite artist, you will be given opportunities to get future air drop of their new collection! This means that, you can get access for their new collection which might interested you or rack for profit by getting those NFT to re-sell it! This strategy create the famous marketing strategy – FOMO, fear of missing out where in this digital age, many of people/peers are earning profits from crypto/nft and you are fear of missing the same boat of opportunities!
This strategy works well for most of the established NFT collection that mentioned before which is why the rapid growth of NFT these days.
Conclusion – Is NFT Hype Worth Your Time & Efforts?
In terms of business purpose, NFT technology is still in very early stage of deplyoment. Many businesses, digital content creators, artist, influencers and more will able to capitalize this technology with their followers while still giving tons of benefits to their own communities and themself. NFT is consider the Web 3.0 development which will soon replace the Web 2.0 – social media/mobile applications. Tons of companies like Facebook known as Meta already moving forwards with bilions of money throw into research & development for AR technology with NFT. In terms of Malaysia, the adoption rate is still slow other than recent project by famous influencer – Namwee which proven that NFT helps local digital content creators to build up their communities and capitalize it!
As the leading Marketing & Technology Agency in Malaysia – Nexis Novus Technology, we are set to release our very first collaboration with local brand to create an NFT projects! We are strive to help local businesses to compete in this rapid growing digital age, Stay Tune For More Information!