BusinessWhat are the benefits you can get by buying an NFT?

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Introduction

At the beginning of 2021, humanity found a new reason to go crazy. The very first publication in the history of Twitter, made by the founder of the platform Jack Dorsey, allegedly went under the hammer for almost three billion euros. A short highlight from the NBA match was "sold" for 208 thousand dollars, and a rainbow gif with Nyan Cat suddenly became someone. And not just to belong, but to cost a fabulous 600 thousand dollars.

Blockchain technology is gaining popularity among both investors and consumers. These digital tokens break down patterns and force large companies to rethink their marketing and communication tactics.

Let's find out why people spend millions on NFT. There are 10 benefits you get by buying an NFT.

Exclusive & personalized experiences

Exclusivity fuels the desirability of a particular thing. Customers crave a personalized experience from their favorite brands. According to Epsilon, 80% of consumers are more likely to make a purchase when brands offer a personalized experience. Creating an NFT collection that provides participants with exclusive benefits can help strengthen customer relationships.

NFTs allow customers to own a part of your brand and demonstrate their association with the brand as a badge of honor on social networks. Ownership creates a strong emotional connection, giving customers a reason to keep coming back and increasing the value of customers throughout their lives. A great example is the streetwear brand The Hundreds, whose Adam Bomb Squad NFT collection gives customers access to exclusive benefits.

Fashion brands can contribute to creating exclusivity based on membership. One example is The Hundreds with their NFT Adam Bomb Squad — they have released a limited edition available only to NFT owners. If you are a promising fashion brand, use this strategy to reward and attract your best fans.

Unique loyalty programs

Customized loyalty programs using NFT can give brands a competitive advantage in the future of commerce. With the help of NFT, fashion brands can provide customers with tokens for early access to new products, discounts, visits to exclusive events and private communities, and much more.

Dolce & Gabbana debuted its NFT Collezione Genesi collection, which has physical, digital, and practical value. In addition to the physical version of the custom-made dream dress, the original autographed sketch and the individual digital reproduction of the dress, the owner of the NFT gets two-year access to the fashion events of Dolce & Gabbana Alta Moda, Alta Sartoria, and Alta Gioielleria in Italy. Thus, NFT encourages the buyer to interact with the brand for two years.

Digital Assets Selling

If implemented correctly, NFT can open up a new source of revenue for fashion brands that complements their physical offerings with digital assets. In this context, NFT is a kind of virtual stepping stone on the way to the metaverse and the future of customer interaction.

Nike has taken its first step into NFT by partnering with the online gaming platform Roblox for the debut of Nikeland. Nickel and customers can choose from a series of ready-made games or customize their own. They can also use accelerometers on mobile devices to incorporate real-world movements into the game, such as long jumps and high-speed races. For more complete immersion, customers can visit the Nikeland showroom to dress up their avatars by choosing different shoes, clothes, and accessories.

A stir before launching a new product

One way brands can use NFT is to organize a pre-sale limited sale of physical products and associate each product with a unique NFT to offer additional value and gauge customer interest.

For example, The Flowers for Society sneaker brand made its first product available through pre-order by linking each product to NFT. Everyone who purchased sneakers got access to the Flowers for Society metaverse community, opening exclusive access to future sneaker releases, limited editions, and collaborations.

Adidas also made its first dive into the Metaverse with pioneers NFT GMoney, PUNKS Comic, and Bored Ape Yacht Club. According to Cryptobriefing, the issue of 30,000 NFT at a price of 0.2 ETH each (800 USD) was sold out almost immediately, which brought in more than $23 million (6000 ETH) in revenue.

Transfer Capability

Game developers create NFTs for in-game objects that players can store in their digital wallets. These game objects can then be used or sold to earn money. Smart contracts are used in NFT because they are created on the blockchain, which simplifies the transfer of ownership rights.

Before the transfer of ownership is completed, smart contracts define certain criteria between the buyer and seller that must be met.

Accessibility

As more and more people start working remotely, abandon materialism, or simply make life easier for themselves when traveling, the usefulness of digital collection increases. Instead of using the wall to showcase your work, you can simply view your collection on your smartphone after installing the crypto wallet — and with the DoinGud app, you will only need your email address.

Rareness

The total number of available NFTs is determined by the author, and this makes them quite special. This not only makes them unusual but also increases their value.

A new approach to customer service

NFTs allow companies to reinvent themselves and improve the customer experience. As a result, thanks to the NFT phenomenon, marketers can provide their customers with a unique digital experience and offer them more unique offers.

According to PwC estimates, augmented and virtual reality will increase the global economy by 1.4 trillion pounds by 2030. And while brands are experimenting with NFT, promotion, and the important role they will play in the metaverse, NFT is striving to become a marketing trend!

Just as there are laws protecting property rights, there are NFTs to confirm ownership of digital assets in a virtual environment. This is similar to the gold rush of the 21st century, with most NFTs using the Ethereum network.

As people get more information, more and more NFTs will appear, which will lead to increased competition. Therefore, there will soon be a need for marketing unique tokens. And specialized NFT marketing organizations will provide community building and sales promotion services to increase sales of collectibles.

Insurance

One of the biggest advantages of NOT is that you can claim insurance according to the NET cost. All products on the blockchain are embedded in smart contracts that record information about the owner, information about the owner, and special attributes of the NFT, such as serial number, date of manufacture, etc. This smart contract can be used to prove the uniqueness and ownership of the product if it is lost or stolen, and thus the owner can claim insurance of the recorded data in the blockchain.

The arrival of the metaverse

According to Gartner, by 2026, a quarter of people will spend at least one hour a day in the metaverse for work, shopping, studying, socializing, and entertainment. However, it's no surprise that fashion brands are struggling to make the leap into the metaverse and stay relevant.

The Spanish fashion giant Zara, in partnership with the South Korean label Der Error, has launched its first NFT project. Customers who purchase any of the AZ collection items have their own virtual avatar in the metaverse with the same clothes they purchased online.

With this step, Zara made her way into the metaverse. According to Bloomberg, by 2024, revenue opportunities from the global metaverse could reach $800 billion. Stunning, isn't it? It is not surprising that fashion brands tend to be metaverse.

Conclusion

These are the main 10 benefits of NFTs. Although non-interchangeable tokens are still in their infancy, they have proven to be highly profitable, providing significant value for sellers and buyers. As a result, NFTs are now rapidly gaining universal acceptance.

Web3 and Blockchain Development Insights

As the blockchain landscape continues to grow, it's clear that the value of NFTs and Web3 technology extends far beyond mere monetary worth. At Mobile Reality, we're at the forefront of exploring the potential of these technologies. We invite you to peruse our detailed articles that offer rich insights into the world of Web3 and blockchain software development:

These resources are curated to broaden your understanding and inform your decisions in Web3 and blockchain. By the way, Mobile Reality has been recognized as one of the top blockchain development companies by Vendorland. Contact our expert sales team for potential collaborations if you consider venturing into NFTs, blockchain, or web3 development. For those aspiring to be part of our innovative team, we encourage you to explore career opportunities on our careers page. Join us as we delve into the transformative world of blockchain technology!

Updated at03.06.2024

Published at02.09.2022