Hello, OptiMIST People!
Back at it again with KaMIST! Your weekly dose of insights into the latest marketing trends. In this week’s KaMIST we’ll dive into how NFTs challenge traditional marketing.
Have you ever heard about CryptoKitty, CryptoPunks, or Bored Apes?
Many people are willing to spend millions of dollars to get digital art from those three digital assets. Why? Well, let us tell you!
This is referred to as an NFT. NFTs are one-of-a-kind, limited-quantity data units that may be exchanged, owned, and kept on a decentralized public blockchain. This includes URLs, photos, videos, 3D objects, social media postings, and certifications. Physical assets can likewise be represented as or supplemented by NFTs if they can be uniquely identifiable or digitized in some way.
NFTs can be a good way to get started in the crypto-marketing sector, which is a new and expanding field that makes use of blockchain technology. Despite their novelty, NFTs bring a variety of new difficulties and opportunities for marketers, consumers, and academics. NFTs highlight concerns regarding digital ownership, originality, worth, authenticity, status, and sharing, as well as the decentralization of branding and distribution.
As a result, the journey with NFTs begins. Because NFTs cannot be replicated, they give sole ownership over digital goods, instilling a feeling of pride in their uniqueness. This differentiation adds value to each NFT owner. Owners also like being able to readily verify their transaction history, which is publicly maintained on the blockchain. This enables a new pricing model, with the original creator receiving royalties for each transaction following the first sale. NFTs, like offline items, may collect a rich ownership history. This provenance is easily verifiable on any major NFT marketplace with famous previous owners adding to the decoration of an NFT.
Marketers may now place their faith in an NFT’s capacity to validate and authenticate itself. This feature has previously been exploited by social media companies to confer status on users in order to increase the value of participating on their platform. Users may also convert anything they produce into marketable items. It will be fascinating to observe how different user-generated material promotes itself, particularly on the market.
Surprisingly, NFTs have found a way to position themselves as luxury items. Despite the fact that a broad variety of NFTs may be obtained for pennies on the dollar, the internet is continuously assaulted with news of NFTs being sold for millions of dollars. This gives organizations the option to build a premium product range, even if their brand sits in the midrange.
Finally, by eliminating the need for intermediaries or sales agents, NFTs have disrupted the conventional supply chain. However, there is no need to lament because the loss of one position merely opens up another, although in a different manner. Middlemen focused on providing platforms for NFT technologies will acquire a lot of momentum in the future.
So, what do you think? Are you interested in starting your business in the crypto-marketing industry?
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