We all have come across news like, “there was an NFT that was sold in an auction for thousands of dollars.” Yes, that’s not a lie. Even the world’s expensive NFT was a 10-second CROSSROADS video by Beeple that was resold for around $6 million. People can easily download it for free, and watch it whenever they want.
This means NFT is something that allows every brand to earn huge profits. If your NFT gets famous due to its effectiveness, then chances are high that it will be sold for thousands or even millions of dollars. NFT doesn’t only allow you to earn money but also offers quick recognition in the market.
Still, many brands do not know much about NFTs and the fact why they should create it. Therefore, I have created this article for brands who are specifically planning to create and buy NFT and are unaware of its pros and cons.
Without further ado, let’s deep dive and explore everything.
Reasons to Buy NFTs in 2022
If you have just launched your brand, I would recommend you invest in NFT as well. There are lots of reasons to do so. Have a look at the few important ones I mentioned below:
- NFTs are Great Investments:
Just like expensive pieces of fine art, NFTs can also be purchased as an investment as they expect to maintain a proper value. Today, the NFT market has become extremely big than ever, it has a sales value ranging between 15 to 20 million dollars per week.
Like traditional pieces of art, there are a few pieces that tend to fetch the highest price. Some limited collections like Cryptopunks comprise more than 9,999 pieces of digital art that sell anywhere from thousands to millions of dollars.
Other rare individual pieces like Pak’s The Merge, also sell for more than 91.8 million USD. This makes NFT a great investment for brands who want to recognize themselves in the big market.
- An Exclusive Right to the Products:
When you create or buy NFT tokens for your brand, you actually get something unique, beautiful, and special that only belongs to your brand. This will be your NFT and you will have an exclusive right to the product. Nobody can ever claim about the product as it will be registered to your name only.
For example, if you buy some product of NFT that best describes your company, then after buying, it will be specifically considered as yours and no other brand can claim about it.
- NFT Represents Community with Shared Interests:
Behind every digital art, there is an NFT that specifically represents a brand. It has a common defining goal and interest that spread awareness about something specific about the brand.
For example, The Honey Bee Club uses NFT to raise the awareness about world’s declining honey bee population. Similarly, you can find general interests like Crypto Baristas, where every buyer is united by a common love of caffeine.
Now, in the same way, the Fraternity Apes Party community is also united by their love for rage & party. With this passion, the Frat has even attracted popular celebrities and entrepreneurs. These personalities include serial entrepreneur Carter Jamison as well as digital branding prodigies Luke, Jordan, and Jackson Lintz.
Some Pros and Cons of NFTs
If you are a brand planning to buy and create NFTs, you need to study all the pros and cons first to make the right decision.
- Any person can invest in NFTs: the biggest benefit of NFTs is, that it is a tokenized asset that is accessible to every person. The ownership of an asset can be more tokenized into an NFT and then easily be transferred among different people around the world.
- NFT ownership can be secured by a blockchain. When you use blockchain technology to signify your ownership digitally, it can make the ownership of your assets more reliable and secure. Blockchain tech can make ownership more transparent.
- You can learn about blockchain technology. Buyers and investors can learn everything about blockchain. They can get a complete idea about what and how to deal with it. It diversifies their portfolios while allocating a sum to tokenized assets.
Cons of NFTs
Buyers and investors also have some valid reasons to not invest in NFTs. Some of them are:
- NFTs are not an asset class: NFTs are usually regarded as the asset class rather than a simple technological way of indicating ownership. General misinformation around NFTs usually causes values of tokenized assets to be very volatile.
- NFT generation is energy-intensive. We all know that NFTs are supported by the Ether blockchain. It mainly considers the energy-intensive operating protocol which is known as proof of work. Now even one NFT transaction needs as much electricity as an average home requires for one day.
- You need to buy Ether first: Most sales occur on the ether platform as the native currency of blockchain is ether which is necessary to purchase before buying NFT. So, the investors who want to buy NFT with fiat money would have limited options. They will have to go through a very long procedure. First, they need to buy ether and then they are required to purchase NFT.
Market Your NFT
In the end, we would recommend every NFT owner market the asset carefully and efficiently. If your brand chooses to purchase or create NFT, then it will have absolutely no use until you promote it across different platforms.
Therefore, it’s important to count on an NFT marketing agency that implements various tactics to promote your collection among various buyers and investors. in the past, our NFT marketing agency implemented Paid media, SEO, and social media marketing for hundreds of clients and helped them achieve their goals. Currently, they are successfully developing and selling NFTs as our professionals are crafting unique marketing strategies for them.
If you want to be one of them, then don’t your time anymore and let’s get started with NFT Unfold for unlimited success and recognition.