NFTs are programmable as per user requirements. They are special assets that cannot be substituted by any other kind of token as a result
Vijay Pravin Maharajan
Founder & CEO, bitsCrunch
An amazing example of how NFTs are turning into modern economic opportunities would be the NFT drop that was announced in January 2022, Arabian Camels. Them being an NFT community created a $50 million Hollywood movie ‘Antara’ based on the life of ancient Arabian knight Antarah Ibn Shaddad. The NFT dropped on January 12, with the integration of cryptocurrency exchange MoonPay.
The Antara Movie NFT is the first of its kind that lets a buyer to digitally part-own rights of the Hollywood Movie. The NFT enables holders to partake in the box office and streaming revenues.
NFTs are programmable as per user requirements. They are special assets that cannot be substituted by any other kind of token as a result. Such NFTs may be designed to reflect and follow specific conditions or laws that are established by the creator using blockchain-enabled technology.
NFTs offer huge opportunities for business leaders since they allow firms to create new business models, thereby increasing the value of their current goods and services and expanding untapped potential in different markets. This new technology offers a wide variety of prospects for trading and investing in a new class of digital assets, as well as an alternative mode of financing initiatives.
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View Details »For instance, in recent times, the music band Kings of Leon released their NFT, which represented the key to digital files, along with a new album that was released. These NFTs contain computer coding that gives buyers access to front-row seats for the upcoming performance of Kings of Leon.
A lot of big brands are investing in NFTs, which widens the spectrum for users to invest and creates new opportunities in a world where technology is constantly evolving and changing.
Here are a few reasons and the brands that are investing in NFTs:
In terms of safeguarding value, NFTs provide the best way possible.
NFTs are designed basically for online trading, thereby including them to be used in the same way as real currency. The trouble with cryptocurrency is that the value keeps changing and is not constant. NFTs, meanwhile, are connected to an item in the real world that has some actual value.
NFTs provide unique ownership of Digital assets.
NFTs are special assets that cannot be substituted by any other kind. Digital objects are very common in video games. However, the issue is that they aren’t exclusive to any one title. These are frequently linked to the platform they were designed for, so if someone wants to buy them, they must employ a broker to connect them with the vendor. This issue is resolved by NFTs, which let users freely exchange their preferred items across many games as well as buy and sell them.
NFTs, give more freedom to people to customize their digital assets.
One of the advantages of NFTs is that it allows users to customize both current and new assets. Everything depends on the smart contracts that are used to construct NFTs. This feature of the technology enables total control over each token, allowing users to modify everything from the color scheme to the logo.
Some of the top brands in the world that are investing in NFTs right now are:
Nike: The sportswear giant recorded a massive $90.59 million in royalties and over $183.69 million in total NFT sales. Interestingly, Nike is probably among the first businesses to report a $1.3 billion secondary transaction volume.
Budweiser: The Beer giant introduced its first NFT in November 2021. There are roughly 1936 different, independent digital representations of beer cans in the Budweiser NFT collection, commonly known as the Heritage Collection. The total NFT revenue for Budweiser was reportedly at $5.88 million.
Not just large brands, common people have also found use cases and opportunities to generate revenue. A closer look at how to create financial streams of income through NFTs reveals to us the following:
- Users can invest in PLay-to-earn games
- Investing early in New NFTs
- Investing in passive crypto mining protocols
- Flipping NFTs
- NFT Trading
- Generating Royalties through trading artwork NFTs
With the NFT mania showing no signs of abating, investors may expect great profits, making it a viable alternative to existing asset classes. With advantages come the problems of people being swindled of their money through problems such as Washtrading, Phishing, and more. Users must be careful and do their due diligence before investing in said brands.
Vijay Pravin Maharajan is CEO & Cofounder of BitsCrunch
( Originally published on Nov 04, 2022 )(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)