NFTs refer to non-fungible tokens. Investors are viewing them as a rapidly-developing asset class. However, their focus is on their pricing. Even media reports concentrate on the same. No one seems to be bothered about why they are suddenly worth much more than before. They only look toward the highs and lows faced by NFTs, especially in terms of dollars. If you want to gain significant exposure to the popularity of blockchain technology, it is a great investment.
Even Jack Dorsey had succumbed to a fascination for NFTs. He is the founder of Twitter. His very first tweet had focused on Twitter, an NFT that had received tremendous hype. Its price had touched $2.9 million.
Similarly, only the affluent in the crypto world, played with NFT projects. Today, the scenario is gradually changing. A wider demographic of investors is expressing keen interest in the newer, innovatively-functioning NFT projects that are coming up.
The Journey of NFTs
Something New to Savor
NFTs entered the world of virtual currencies, in the form of a digital asset novelty. They were exclusively meant for crypto natives.
To illustrate, there was the BAYC project. It stands for Bored Ape Yacht Club. The images were generated algorithmically. They targeted people holding digital wallets and had a close bonding with cryptocurrencies. They knew, and were comfortable, with handling digital currencies.
The images had great value for Web3 communities. They operated within a digital asset industry, which was becoming quite popular.
Beginners May Fancy Them Too
Since then, innovative NFTs have been making an entry into the crypto world. They are inviting novices to befriend them, unlike earlier, when only crypto natives could hold them.
Therefore, it does not matter if the invitees have not been born or bred in the cultural atmosphere of cryptos. They are happy to hold NFTs possessing tangible value, even in the physical world. Of course, these NFTs hold value in the virtual world’s crypto wallets, too.
NFTs Have Value
Sometimes, the possession of NFTs brings other types of rewards. For instance, owners may gain value in the form of exclusive social opportunities and changing lifestyles. Alternatively, they may establish close associations with traditional luxury brands. Therefore, they strive to accumulate more NFTs.
When the QR codes appeared earlier, NFTs took on an attraction all their own. Today, they have taken the appearance of a social experiment. It is as if the founders wanted to discover potential use cases for them.
True, the financial rails have yet to be set up. Regardless, it is easy to imagine the current items that hold value in the real world. These items include club memberships, wine collections, etc. They are linked to NFTs and may be transacted in the form of digital assets.
There are live examples of how there may be close friendship between the physical world and the digital world, via NFTs. One such connection is NFTiff. This term signifies the bonding between Tiffany & Co. (TIF) and CryptoPunks.
NFTiff is responsible for ensuring that digital art does not target only the crypto natives. Instead, it may reach out to the mainstream, too. As a result, CryptoPunks placed 250 NFTiffs on the show.
The display enabled purchasers to receive digital artwork from CryptoPunks. It also enabled them to receive a gemstone-studded, 18-karat gold pendant. It was a physical version of the concerned artwork.
Note that only a limited number of NFTiffs were on offer. Therefore, people would rush to buy them. After all, they were the hottest fashion pieces on display. They combined elite global branding, luxury goods, and Web3 technology.
Thus, NFT projects could have a connection between digital assets and real-world luxury goods. There is immense potential in the idea of converting digital artworks into physical ones. Creators of artworks, and NFT image collections, would be able to attain success via this winning formula.
NFTs are keen to enhance consumer experiences. They could relate to exclusive communities, lifestyles, fashion, etc. This way, it will be possible to appeal to novices, who have not yet entered the arena of cryptocurrencies. There will be no need to keep everything confined to crypto natives only.
At the same time, NFTs should be safe to use, trade, and store, whenever diverse use cases come into the picture.