NFTs are the intersection of art, commerce, technology, and a glimpse into the future. With keyword searches peaking at 5.5 million per week in January of 2022, to say NFTs are a trending topic is an understatement. But first— what’s with the name—non-fungible token? Why non-fungible?
What Are NFTs
Interchangeable is a synonym for fungible, so non-fungible means non-interchangeable. Although not as precise, Limited Edition Tokens or Unique Tokens might have been the better choices, at least when it comes to the public understanding of NFTs. However, as a marketing professional, I have to admit that the naming of non-fungible tokens is a stroke of genius—it evokes curiosity. You can’t confuse it with other search terms—it’s futuristic—pure genius!
NFTs in a Nutshell
First, let’s go over the basics to understand how NFTs are important to your business. A simple way to understand NFTs is as an item in an accounting ledger. The T in NFT refers to a token because it’s a unit logged on the blockchain—the structure on which cryptocurrencies rely. In summary, instead of owning a unit of currency, you own a non-interchangeable digital item that is encrypted across multiple computers on the public record—it’s an asset that anyone can look up and verify the ownership of.
A side effect of NFTs is how they influence cryptocurrency. Ethereum was the first crypto chain to record something other than money. That first thing was the generative digital art file titled Quantum. Bitcoin does not mint NFTs. Although there are Bitcoin-secured NFTs, this market is small.
The valuation of Bitcoin is much higher than Ethereum, but the use of Ethereum in the minting and trading of NFTs has strengthened the popularity of the currency. High trading fees and poor optimization of the Ethereum chain have damaged this upward trend somewhat. These combined facts have spun out new coins in the wake of the whole NFT craze. For example, in anticipation of the land grab during the drop of the Otherside metaverse also known as Otherdeeds, Yuba Labs, the creators of Bored Ape, issued their own currency, Ape Coin.
To someone my age, this feels reminiscent of the first wide adoption of the internet. Decentralization, open-source, and the bubble markets we see now all smack off the same excitement and money that fueled the 90s dot-com boom. Career-wise and portfolio-wise, I took full advantage of the first internet craze, and I look forward to doing the same again.
The driver for the NFT market is similar to the traditional art market—aesthetic pleasure, the thrill of the auction, and exclusivity. Collectible digital art, 3D avatars, land in the metaverse, and virtual experiences are the most popular NFTs to buy. And by popular, I mean the five-year-old company OpenSea, the leading NTF trading platform, was valued at 13 billion dollars.
Other markets include Rarible and Foundation.
Popular NFTs are a lot more than a digital file, however. They come with status, community, and metaverse experiences. Bored Apes and CryptoPunks are two of the most highly coveted NFTs. Your average Ape goes for about 400k.
Many are owned by celebrities such as Snoop Dog, Justin Beiber, and Paris Hilton. They are original works of art with future provenance, but the real appeal is that a Bored Ape doubles as club membership to the Bored Ape Yacht Club. Ownership grants you access to benefits, which are undisclosed but include access to a private discord server, airdropped collectibles, exclusive games, pre-releases of newly minted NFTs, and currently, deeds in the Bored Ape 3D metaverse, Otherside.
Case Study for Business: Local Weather
I’m not telling you buying and selling NFTs is what you should be doing with your time. Instead, for the right brands, minting NFTs can be a game-changing move. The experiential nature of NFTs is bleeding edge marketing. This is important to your business because you can associate a brand or a physical product with an NFT drop.
Take advantage of this and you have the opportunity to tap into a market of over ten million eager and highly affluent young people. AJ Vaynerchuk, Gary-Vs brother, and Russell Wilson, Broncos quarterback, are leveraging this market with Local Weather, an NFT-powered, nootropic-boosted hydration drink brand aimed at Gen Z consumers. Holders of the Local Weather NFTs gain membership into an exclusive metaverse world and will be the first to receive the four beverages and have exclusive access to a fifth flavor.
How Sliice Can Help
Sliice Marketing can rapidly develop an NFT for your company, including creating and minting both 2D and 3D art, developing a metaverse experience or world that NFT holders gain access to, and hyping up your drop. We work with young, hip designers, artists, and coders who are plugged into the trends and preferences of the Gen Z market. We can take you from concept to drop in 90 days!
Contact Sliice Marketing. We are the first global agency dedicated to metaverse marketing and design. We will build crystal clear messaging that resonates with your audience in and outside the metaverse. Don’t go it alone—partner with Sliice to gain visibility in the metaverse and stake your claim today.