Are NFTs around to stay or a fad destined to disappear?
The abbreviation that seems to have been on everybody’s lips for the past year has been ‘NFT’. The Non-Fungible Token, to call it its Sunday name, has seemingly appeared from nowhere to take over the digital world.
At first, it was those in the know whispering about online pieces of artwork, and before we knew it, the rich and famous were ploughing their money into completely intangible items.
Replacing buying a sports car or a Richard Mille with buying a CryptoPunk is the last thing most of us ever thought we’d see. But we guess it’s time to open our eyes and embrace the rage. Even if we can’t afford any of the above, it’s nice to know what’s going on in the world, isn’t it!
So, the question arises, are we all too late to the party? Or, will this trend continue to boom and be worthy of investment even at this point in time? Well, in this blog, we are going to attempt to provide you with all the answers you need, from definitions to brand support and the incredible amount of spending involved in the world of NFTs.
Come with us, and let’s take a step into the future that may yet be the past.
What is an NFT?
No better place to start than a definition, right? Despite dominating the news and gaining the support of some of the biggest brands in the world, most people still avoid talking about the NFT, but why? Well, the answer really is quite simple. People out there still avoid talking about them because they don’t fully understand what they are, so let us explain in a roundabout way.
NFT’s originate all the way back in 2014. Whilst most of us were talking about whether the ‘man bun’ was a suitable haircut or not, the tech wizards were plugging away in the shadows on the first run of non-fungible tokens. However, it’s those like the Cryptopunk, who appeared in 2017, who have really been behind the spike in interest. Actually, what about the “crypto-Manbun”? Somebody write that one down.
Although digital art is the end product of the NFT, it isn’t by any means the whole thing. The NFT itself is actually the metadata included within a contract hosted on the Ethereum blockchain. Confusing right?
Well, basically, in buying an NFT, you get yourself a piece of code (text) that says exactly what the NFT is, whether it is a picture of a cat or the first-ever tweet (yes, this is also a genuine NFT, $2.9 million of NFT to be precise). It’s that contract that gives you ownership of the NFT itself, and that’s important, a bit like the deed to a house. Because, as in the world of classical art, those terrible copies of the Mona Lisa hung in Pubs around the world, NFTs can be copied and printed out toom, that’s why the code is the key information that only you will own. So essentially, the image isn’t what brings the kudos to the owner; it’s the contract of ownership.
Yes, you may have a copy of my CryptoPunk as your phone wallpaper, but I have the unique code to say it’s mine. Crazy, we know, but people like rare things; we spent all that time chasing Charizard cards and look at those first editions now…
What does the future hold?
If you speak to those in the know, they will tell you that 2022 is the year that NFTs can no longer be ignored. So, why is this year going to be the one that makes the difference? Well, the expected buy-in is set to increase drastically thanks to brand endorsement.
But what exactly are brands doing in the digital space?
Well, we’ve already seen countless global companies invest in the NFT space in several completely varied ways. Whether you take the huge leap from Mark Zuckerberg to rename Facebook to Meta (to fall in line with the metaverse rush) or Coca Cola’s limited wearable virtual bubble jacket for all those active on the platform Decentraland – the digital sector is big business. Brands are focusing more of their marketing efforts on offering the world something digital, which speaks volumes alone.
However, there’s much more to this than even the net spend from certain brands. As popularity has risen amongst the big corporations, there’s also been a rush for businesses to invest in the NFT sector too. In December 2021, we saw fashion and sportswear giant Adidas do more than dip their toes in the scalding NFT water. They jumped in, face first, with no signs of turning back.
Adidas landed its first move with a strategic, across the board approach. A range of digital Adidas endorsed sportswear was launched alongside a physical product range to show how genuinely invested they were. Whatsmore is they even went one step further and purchased a Bored Ape Yacht Club NFT named Indigo Herz. As if the digital and physical world combo wasn’t enough of a play.
So is this all about interacting with a broader customer base or engaging those who already purchase on a deeper, more meaningful level?
NFTs and Create8
Do you ever wonder if you could make an NFT? Maybe you have some graphic design background and a social influence? Or maybe you’re a musician with an unheard track you’d like to announce with a bang? Well, with an NFT expert marketing agency by your side, you most definitely can! At Create8, we have a number of clients involved in the digital world, and that has helped us grow our own knowledge and fine-tune what we can offer within the sector.
So, if you’re looking for some advice, guidance or even a partner to come along on the journey, reach out to us today.
The digital/physical space
Here we want to touch on something mentioned briefly above. The true value of this sector long-term is going to be diversification. If you are aiming to target someone who believes wholly in the physical world and only wishes to spend their money on something tangible, you need to think smart. This is where the digital/physical relationship comes into play.
The earliest signs of growth within the sector long-term are aimed around the idea of implementing physical experiences or products alongside NFTs. For example, if you are to purchase the latest Coca Cola NFT, you also receive a pair of 1/1 Coca Cola x Nike Trainers or a lifetime supply of free Coca Cola.
By twinning both realities, the world of NFTs will gain extra buy-in, and in turn, those hungry for physical products will get something tangible that no one else has… everybody wins.
NFTs, despite what you may think, are certainly not limited to images and display pictures, although if you based your knowledge on Jay Z alone, we forgive you for thinking that.
Growing pains
You can always attempt to plot the downfall of something, but in this case, that feels like ill advice.
What we will do is highlight that although some artists have managed to make hundreds of thousands and even millions in the NFT world thus far, others haven’t been half as lucky. Online piracy has sky-rocketed since the centre stage appearance of NFTs. Some artists have found their work has been minted and sold online for hefty profits without their knowledge, which we can not condone in any way, shape or form. If an artist doesn’t wish to take their work online, let’s keep it that way; at least then authenticity comes to the forefront.
That’s the growing pain for us that will plague the NFT sector. It’s the fact that those who are technically savvy can make a quick dollar from older less-versed artists. Whilst some reap the benefits, others see the process as a potential stumbling block for the art world, and we can’t help but understand both sides of the coin.
So, see it how you will; we think being considerate to those around us is the way forward, both online and offline. If you’re buying something, make sure of its origins and cover your own back too.
At Create8, we are an innovative and thought-provoking team of creatives who help all of our clients to align themselves with their audience through strategic design. There is no job too big or too small for our group of experts, and we can’t wait to hear what you have planned. So, the process is simple, follow the link below, have a look around and see what catches your eye. If there is a particular service or package you are interested in, reach out to us and find out how we can work together to make your idea into reality.
We can’t wait to hear from you.
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