If you’re reading this article, you probably know that in 2021, Jack Dorsey’s first-ever tweet sold as an NFT for $2.9m.
Recently, the owner of that NFT tried to auction it off for $48m but received a top offer of $280, indicating a significant drop in value.
This raises the question of whether this is an anomaly or a sign of a paradigm shift in the utility of NFTs.
When it comes to investors in the NFT space, there are four main types:
- First adopters who believed in the intrinsic value of NFTs and got in early.
- Speculators who saw an opportunity to make money and jumped on board in 2021.
- Long-term investors who are building a vault of NFT assets for future value growth.
- The masses who realized the opportunity to make millions may have had a short window and missed out.
Currently, digital images of apes and kittens are selling for millions, but we need to consider who is buying them and if it is a sustainable business model.
There are investors with deep pockets who joined during the bubble growth in 2021, acquiring NFTs at high prices.
On the other hand, there are early ETH backers who acquired ETH for pennies and may not see the same value in exchanging it for high-priced NFTs.
Many speculators acquired NFTs with the sole intention of flipping them for a profit, leading to failed secondary sales due to their speculative nature.
Looking ahead, brands are starting to explore the NFT space and seek opportunities for creating value and utility for their customers.
Big brands like Asics, Coca-Cola, Taco Bell, McDonald’s, and the NFL have already made moves in the NFT space, often donating proceeds to charitable causes.
Lesser-known brands will face challenges in identifying opportunities and creating perceived value with their campaigns.
NFTs offer more than digital art; they can provide unlockable digital experiences, access to exclusive benefits and merchandise, ownership of physical goods, retail marketing opportunities, additional revenue streams, and unique brand-specific bragging rights.
Success in this space requires a revolutionary way of thinking and effective marketing tactics to generate excitement and deliver value to users.
NFTs have the potential to create long-term brand loyalty and customer advocacy, making them a unique marketing initiative.
Overall, there is a need to identify the framework for success and choose the right path while creating appropriate NFT assets.
Corey Padveen and Stephen Padveen are experts in marketing strategy and have extensive experience in various industries.
