Everything I've heard about WEB3: NFTs and NFT Marketing.
What NFTs
NFTs are virtual tokens that represent ownership of something inherently distinct and scarce, whether it be a physical or digital item, such as artwork, a soundtrack, a collectible, an in-game item, or real estate. Unlike regular cryptocurrencies like bitcoin or fiat money like the U.S dollar, these special types of digital assets cannot be mutually exchanged for one another because each token has a specific value based on its unique traits and attributes.
NFTs are real, and you can earn money from them, but only if you know how to create them, spot them, bid on them, or sell them intelligently.
Suppose you lend a certain amount of money to your friend, Let's say $100, and they are expected to pay the same amount back in a couple of days. You will receive the payment in, say, two $50 notes or five $20 notes. However you pay it back, you are not obliged to use a $100 note. Why? Because dollars are a fungible asset. They are not unique and can thus be easily exchanged with other notes.
Now, suppose you lend your friend your favorite one-direction T-shirt with Harry's autograph addressed to you. After a few days, your friend returns another T-shirt with another band, let's say cold-play(which is entirely different from the band T-shirt you lent your friend). Obviously, this new T-shirt lacks Harry’s signature. Will you accept the new T-shirt? No, because in this case, the T-shirt has become a non-fungible asset due to Harry’s signature. (Harry's signature on the T-shirt which is addressed to you, is proof that you had not only gone to a 1D concert, but you had also met Harry and he had signed on your T-shirt, Therefore you cannot exchange this Tshirt for another one). The signature makes it Interchangeable and proves Ownership.
GETTING INTO NFT.
If I got a dollar for every time I was asked “How do I get started in the NFT space?”, I would own two Bored Ape NFT arts, lol just kidding, but I could probably have a large collection.
So let’s get right into it.
- Artist: The NFT space is popularised with art, although music, real estate, and fashion are slowly beginning to creep into this space, arts and artists have been kind of the main focus. As an artist, you might be interested in NFTs because it gives you a way to sell your art and still retain ownership. Also, NFTs have a feature that enables the artist to earn a certain percentage every time an NFT sells or changes buyer, making sure that if your work gets super popular and increases in value, you’ll see some of that benefit. Amazing innit?
- Buyer: I often get asked “why would someone spend so much money on a piece of art” “Why buy a jpeg I can just download on the internet?”. Well, it's simple, but not that simple. Simply downloading the Jpeg doesn't mean you own it. Buying an NFT usually gets you some basic usage rights, like being able to post the image online or set it as your profile picture without attracting a lawsuit. Plus, of course, there are bragging rights that you own the art, with a blockchain entry to back it up as proof. Buying an NFT from your favorite brand may include some really cool perks like discounts, air-drops, merch drops, limited edition items, special invites, and even more digital assets for your collection.
- Collector: If you want to get into collecting NFT art, I would recommend looking into projects that you love rather than chasing the kind of eye-popping arts you may have read about. The digital art market is still new and highly volatile. Conducting your research is also key. Make sure to look into NFT projects that form a healthy community, Join their Discord servers, Twitter, Clubhouse, Reddit, and wherever they decide to host their community. Collectibles will always have a place in the community, collecting has always been something humans have done. Whether you collect rocks or collect cards, it’s always been a way of living and NFTs are sure to keep the trend going steady.
- Investor: If you are looking to make an investment in an NFT project, then stay on the top of NFT trends, of what communities are growing the fastest by following key players, founders, and influencers on Twitter and checking the stats on OpenSea. Investing in digital assets such as NFTs can be fun, but also extremely risky as the saying goes, “with high risk comes big rewards”. You can invest in these projects or communities by looking into long-term investment opportunities. Long-term investment opportunities are abundant, mainly because there are many new communities and brands being integrated into the metaverse and built with NFTs as their foundation. Not only does this mean you have the chance of investing early in a start-up, but you also have a high chance to earn a huge profit in the future once the brand builds a solid reputation and becomes a staple in the community.
THE NFT MARKET
Now you know how to get into the NFT space. whether as an artist, collector, or buyer, you would need to visit the marketplace to get your own NFT or mint an NFT. Just as you have a diversity of stores like Walmart, Target, etc and you have your favorite one, so are the NFT marketplaces diverse and have different aspects. Let’s talk about the 3 NfT marketplaces making waves.
- OpenSea: OpenSea is the leader in NFT sales. OpenSea has all sorts of digital assets available on its platform, and it’s free to sign up and browse the extensive offerings. It also supports artists and creators and has an easy-to-use process if you want to mint your own NFT. What makes this marketplace unique is its ability to support different payment tokens, so the platform’s name is appropriate. For an introduction to the NFT world, OpenSea is a great place to start.
- Rarible: Rarible is another large marketplace for all sorts of NFTs, similar to OpenSea. All kinds of art, videos, collectibles, and music can be bought, sold, or created on the platform, unlike OpenSea, you’ll need to use the (RARI) token, which is the currency for this marketplace to buy and sell on the marketplace. Rarible is built on the Ethereum blockchain.
- Axie Marketplace: Axie Marketplace is the online shop for the video game Axie Infinity. Axies are mythical creatures that are bought and trained and then put against other players’ Axies to combat and earn rewards. On Axie Marketplace, players can buy new Axies, as well as entire lands and other items, as NFTs for use within the game. Axie Infinity tokens (called Axie Shards) are built on the Ethereum blockchain. As such, they can be bought and sold on a variety of other NFT marketplaces
NFT marketplaces are no different from other markets, except for the fact that they are built on a blockchain platform and are digital in nature. They allow collectors to buy, sell and create their own tokens that represent ownership of unique, items digitally.
NFT marketplaces allow NFTs to be stored, displayed, traded, and in some cases minted (created) one can even curate a collection of NFTs on the blockchain. It is a commercialized platform built on blockchain technology and uses the currency of that blockchain.
In order to access and use these types of marketplaces, you will need:
- A crypto wallet:
Unlike a normal wallet, which can hold actual cash, crypto wallets don’t store your crypto, rather they hold crypto live on the blockchain, and can only be accessed using a private key. Your keys prove your ownership of your digital money and allow you to make transactions.
You’ll need to choose a wallet that is compatible with the blockchain network that supports the NFTs you wish to buy. For example, if you plan to buy or sell NFTs based on the Ethereum blockchain platform, you will need to use a compatible Ethereum wallet such as MetaMask. Before you can begin buying, you would need to create an account by signing up on the respective blockchain, you will also need to pre-fund your wallet before buying, listing, or minting an NFT. Again, you will need to find out which cryptocurrencies are supported by the marketplace you intend to use
Ethereum is by far the most popular system for buying, selling, and creating unique, digital items. There is, however, a growing list of competitors that have also entered the market, including the following:
- Binance Smart Chain
- Solana
- Polkadot
- Algorand
- Funding
Just as you're not able to use your physical wallet without physical cash in It, you cannot buy from the NFT marketplace without cryptocurrency. You would need to fund your crypto wallet by first creating a wallet on the blockchain, buying some cryptocurrency, adding some cryptocurrency to your wallet, and Connecting your wallet to an NFT platform.
- Minting
Minting an NFT is the process involved in digitalizing your art on a blockchain platform. NFTs are “minted” once they are created. The process simply involves uploading or creating the NFT on the blockchain. It is as simple as creating an account on Facebook. NFTs are usually purchased directly for a fixed price or through an auction. In some cases, prospective buyers can submit offers to the owner and attempt to negotiate a better price(this is called bidding). Minting an NFT gives you control over your creations and offers unregulated access to a global network of art and other digital item collectors.
NFT MARKETING STRATEGIES
NFT marketing is similar to marketing another product. The rise of NFTs also makes it a necessity to stand out from the rest of the crowd. The very basics of Marketing for NFTS is ensuring that your art or product is not marketed as same in comparison with your competitors, It is necessary to have strong fundamentals and ensure product differentiation. A good way is to talk about your NFT project’s unique features.
Some NFT marketing strategies include
- Product Storytelling: Beyond just digital art, NFTs are being used to experiment with new forms of storytelling, particularly in the case of advertising. People need to know what they are investing in, most NFT art proceedings have a certain percentage channeled into a project, charity, or brand.
- Influencer Marketing: In today's age, influencer marketing plays a huge and effective role in product marketing. Influencers are trusted individuals on social media, and their word carries a lot of clouts and draws the attention of followers. Many people make their buying decisions based on an influencer’s opinion of a product. Social media audiences typically find their influencers relatable, and their audience is assured of a product’s quality if their influencer approves it. Brands need to find the right influencers who can market their NFTs. A known voice in the NFT field can help sell a brand and increase awareness. This approach allows them to gain greater credibility among their intended audience.
- Rarity: Minting rare NFTs is an essential part of the business because they have the potential to be purchased for a tremendous amount of money. Striking rare NFTs is an important part of the business due to having a potentially enormous amount of money. The rarer the combination or the appearance of a particular art, the more unique the collection is and the more unique it is, the more investors would be interested in it. Fortunately, there is a way to find the rarity of an NFT and that is using a tool called Rarity Tools. Rarity Tools is exactly what it sounds like, it’s a tool that helps you find the Rarity of an NFT, through something called Rarity Score.
- Building a community: Building a community for your NFT should be your primary goal. For longevity in the market, brands must communicate with their audience and stakeholders about their values. Doing so allows you to stay in touch with your investors and users, constantly update them on your project’s progress and have a healthy discussion of what the ‘future’ for your NFT project could be like. The go-to platforms for setting up your community are Twitter, Telegram, Discord, Bitcoin talk, Reddit, etc. It is important to note that the community for NFT’s is somewhat similar to the Gaming community and hence discord may be a wise option. Feedback is the element that decides if your communication is one-way or two-ways. Successful brands can grow their business and increase their audience by taking feedback from their customers and stakeholders. Consider hosting online feedback sessions where you can understand the needs, opinions, and demands of your audience. Also, keep them updated about the trends in the current market and often get feedback from them about your services.
- NFT Giveaway: NFT Giveaways have become the talk of the town and are often seen across Twitter. The goal for doing a giveaway is to increase your brand exposure and announce to the world what you have on offer. Moreover, doing so would also increase signups for your NFT Marketplace as in order to claim the said NFT you have to create an account. You could have this as a condition for participating in the said giveaway to ensure that it is guaranteed to bring in new users.
TAKEAWAY.
NFT brand marketing experiences incredible changes and transformations every day. Tech giants like Twitter, Facebook, and Instagram are joining this field and launching new features. Artists benefit the most from NFTs as it gives them the freedom to do what they want and promote their work. They retain control over product, place, promotion, and price and do not rely on intermediary assistance. The truth is NFTs are here to stay, even when it may seem like it is all moving fast, resources and influencers are becoming readily available to put people through.
