Are NFTs Dead? New Game Changing Trends
July 26 2021 - 12:17PM
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NFTs have proven to be the darling of the blockchain. With notable
artists, musicians and even sports stars releasing their own
private pieces and collections. The most notable milestones were
the Beeple piece, THE FIRST 5000 DAYS, which was auctioned off at
Christie’s for $69 million. This proved to be a turning point for
digital art and NFTs, which had gone from a place of digitized
meme’s like Jack Dorsey’s first Tweet, gifs and songs, to an
awakening of modern art, More than just collectible, this was a way
that the art world could display more pieces to more people. It
took art away from the few, where a piece attached to someone’s
wall could now be viewed by millions of people in a digital
gallery. However, NFTs hit a bump in the road. The news hit hard
about how the minting of one single NFT could consume the same
amount of energy as a household in the EU would use over the course
of a full month. This marked a turning point for NFTs, with critics
claiming that NFTs were bad news. And yet, despite the critics,
according to Reuters, the market for NFTs surged to new highs in
2Q21, with $2.5 billion in sales so far, compared to just $13.7
million in the first half of 2020. And still, sales volumes are
skyrocketing as OpenSea, a leading NFT marketplace, reports
monthly sales volumes reaching a record high in June. There is,
however, so much more to NFTs than meets the eye. This is an age
where literally any tangible asset can be tokenized. Where backing
up a token with a real asset brings many benefits, from security,
automatic authentication and verification of ownership and a
logistical solution to the delivery and storage of goods. Let’s
look at some of the key themes where NFTs are leaving their
footprint: Fine Wine The current market for vineyard owners is
tough. They often borrow money each season for the development of
their vineyard as well for the growing, cultivation, and
manufacture of their product. And yet, they do not see any return
on their borrowings for months or even years until their wine has
gone out into the world. If they have a bad harvest one year due to
weather or infestations, this puts them at risk of default.
Tokenizing their product is like collateralizing against current or
future produce, in a similar way to how futures on commodities
works. WiV is a project that is tokenizing collectible (and
drinkable) fine wines. Collectible wines are popular as an
alternative investment for investors looking to weather bear
markets, by allocating alternative investment into their
portfolios. WiV gives its investors a token to represent ownership
of the wine they purchase. This means that investors don’t need to
concern themselves with the logistics and authenticity of the wine.
WiV, whose goal is to “become THE source for Wine collecting on the
blockchain, and in all Metaverses’ , also serve an important role
for winegrowers and vineyards. Tokenizing Game Items For real
die-hard gamers, in-game collectibles are important. They are
something to work towards, something to collect and something to be
proud of after having spent hours working to collect them. For
gamers, the thought of having real-life ownership of their
collectibles, in a way in which they can keep them, sell them or
use them in other games is a big deal. (you have to be a gamer to
get it) and with the gaming industry heating up, this is big
business. The Hoard Marketplace allows users to trade, buy, sell,
loan, or rent non-fungible tokens (NFTs), such as for in-game
items, as well as for digital art, and also domain names. Hoard
gives game developers the foundation to merge their game items with
the Ethereum blockchain. Users of Hoard “meet” in a peer-to-peer
environment to forge an interaction between gamers and
developers. The HRD token represents the tradable assets
behind it, such as game items. On top of that, holders of the token
can stake their tokens for passive yield, and transact with them
and retain voting rights. Hoard is even promoting flash loans,
which are instant loans to users, no credit checks are necessary.
“The Loan feature on the Hoard Market opens new possibilities for
NFT holders. This is the first step of further development of novel
NFTs functionalities/utilities which Hoard is going to introduce in
the coming months”, said Radek Zagórowicz, CEO of Hoard. Trading
Card Collectibles People love collecting things. The newest and
hottest fad to hit the blockchain is tokenized trading cards. Many
NFT marketplaces offer collectible trading cards, which can be
collected, swapped and sold for profit, and this is a popular
niche. Tarasca has built a product around this niche for B2B, which
gives businesses the chance to build their own private trading
cards, which they can give out to their customers, or indeed they
can build an entire business around trading card collections.
The more rare or customized a trading card or NFT is, the greater
its value. With Tarasca users can create, and exchange collectibles
using their DEX. Monetizing NFTs The key to the popularity of NFTs
and other products in the blockchain is mass adoption. The more
people that get on board, effectively the better the longevity and
future potential of this unique arena. The trick here is creating
products that appeal to the masses by being accessible. One company
that is working on this is Spores Network. They are creator-centric
and offer users the chance to mint and transfer at a reasonable
price, therefore increasing the users’ profit potential. They do
this through a variety of ways, not least by royalty sharing with
creators. Spores is working on creating the very first NFT
marketplace to sit on the Cardano blockchain, which comes with many
advantages. These include the energy efficiency and super low
transaction fees related to mining and minting when compared to
both Ethereum and Bitcoin. NFTs for Marketing Campaigns As
everything is happening online now, NFTs prove to be an effective
way for marketeers to gift and incentivize users, in an automated
and trustless fashion. Enjin, a leading ecosystem for NFTs,
recently launched their “MyFirstNFT” marketing campaign, which has
set the stage for the way we conduct marketing online. A new method
for brands to directly interact with their customers, with no
digital agency in the middle. This campaign saw 50,000
one-of-a-kind digital art NFTs being dropped to a completely random
set of users who had interacted with its ads and social media
posts. The Bottom Line The bounds and potential of NFTs and the
blockchain are infinite. If you can think it, then you can build
it. One thing that we have learned over the last year, is that
people’s habits and patterns can change fast, none less than
digital interactions. NFTs are not dead, they have barely gotten
started. Image source: DepositPhotos.
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