Public interest in NFTs has plunged📉. But many companies are still quietly testing the technology’s potential.
The trough of disillusionment always leads to the plateau of productivity. Best be ready for it.
Here are 9 ways NFTs can help redefine companies’ value proposition👇.
Exclusivity💰: Many people purchased NFTs to show people online how cool they are and how much money they have. Exclusivity has long driven luxury sales; NFTs are no different. The internet has been a great equalizer for decades, but this may be coming to an end.
Social capital🤗: Exclusivity is often shared by and with people of similar socio-economic backgrounds. This creates social capital. NFTs can be used to bring like-minded people together, in online communities, coordinated around a token.
Community🌎: Social capital and its own form of exclusivity naturally leads to the creation of communities. For these groups, NFTs today act as both “artifacts of networks” and voting tokens to make decisions.
Access🔑: By their very nature, NFTs are unique and cannot be broken down. As such, their unique code can work as a key to grant access to a community, to a real-world event, to a concert, to a sale… Mixed with the other forms of value mentioned here, this can be quite powerful.
Authenticity💳: Since tokens are unique, they can be used to authenticate products they are linked to (ex: YSL sends an #NFT to your digital wallet when it sells you a bag). For industries suffering from plagues of fakes, this opens many possibilities.
Utility⚡: A utility NFT serves a very real purpose online. The easiest example to grasp is an NFT that also acts as a voting token within a DAO. In the future, we can think of utility with regards to national identification, but we are far from it today.
Rewards🏆: the blockchain being transparent, it’s easy for brands to identify who may own a specific number or combination of NFTs, and reward these people through a promotion or a unique gift, thus increasing brand loyalty.
Investment🏦: One might think it wise to buy specific NFTs early, and keep them as they accrue the value highlighted above. A company might get a head start by believably implying future value exists.
Entertainment🎥: At the end of the day, why can’t I just like a silly picture and enjoy owning it as a piece of a company’s history, or as the totem of a community? NFTs create hedonic value: owning one creates pleasure for its own sake. Companies can do well to understand that.
Conclusion : you don’t create digital tokens purely to make money. You create tokens because they add value to existing and/or potential customers. Which in turn give you money. The concept of potential new value is fascinating, as the above can be mixed and matched as needed.
This is a very short summary of a longer article which you can find by clicking this link. I encourage you read it if you enjoyed the above.