29/07/2021 NFTs 2.0: What's Next?

The downsides and areas of possibilities for the future of the virtual assets

 

By Jason Velliquette

Has the hype died off? Is the fad over? With Google Trends reporting an 80% drop in search interest for Non-Fungible Tokens (NFTs) since its peak in late March, do NFTs have a future in the digital marketing ecosystem?

Bitcoin Leads 30-Day NFT Sales, Outpacing 24 Blockchain Competitors
Nifty News: PayPal removes NFT protections, Adidas NFT sneakers and more
The World Wide Web's inventor is selling its original code as an NFT

Early adopters have started to settle down and the flashiness of the latest shiny object looks like it’s starting to fade. However, the topic of NFTs still looms in headlines, suggesting curiosity hasn’t entirely dissipated.

Marketers would be smart to keep an eye on the NFT industry as it matures and becomes mainstream. The potential is not in what has already happened; it’s in the ideas of what copyright, production and ownership mean in a digital world.

The cost of getting involved

Though brands as diverse as Gucci, Taco Bell and the NBA have benefited from the NFT PR wave, there are a few issues that will need to be resolved before more marketers innovate with the concept:

The price of selling NFTs

The cost of selling NFTs is a double-edged sword. The high price reduces mediocre products on auction blocks but also prohibits brands from entering the market. Other costs associated with selling NFTs, include:

  • Minting Fees: To generate a certificate of authenticity
  • Listing Fees: The auction listing fee
  • Commission Fees: Depending on the platform and auction type used
  • Transaction Fees: The amount you pay for getting the money out of escrow and transferring it into your digital wallet

Uncertain ROI

For example, working with the blockchain company, Dapper Labs, the NBA has set up its own marketplace called NBA Top Shot, where fans can buy and sell their favorite NBA highlight clips or “moments.” Sales peaked in February ($231.6 million) and March ($230.4 million) but have since dropped off sharply (an approximate 60% decline) despite being one of the industries (i.e., sports collectibles) most likely to develop a sustainable NFT revenue stream. With such high associated costs and low guarantees of return, marketers are hesitant to experiment in this space. 

Legal challenges

Not only is the NBA Top Shot a pioneer in NFT minting and selling, but it is also the lucky recipients of the first NFT lawsuit. In short, the plaintiff accuses Dapper Labs of selling securities when also selling NFTs on its platform, causing a conflict of interest. With any new ventures involving emerging tech and money, there is sure to be conflict and risks most marketers can’t afford to take.

Страница 2 из 2

Environmental impact

Despite being a virtual asset, the process of minting, recording and selling/buying NFTs has real-world implications. Blockchain transactions consume an immense amount of electricity, which produces a fair amount of greenhouse gas emissions. In addition to the monetary costs, those seeking to play in the world of NFTs must also bear the burden of the carbon footprints they’re creating as well, which may conflict with a brand’s sustainability values.

What to expect with NFTs 2.0

The downsides must be addressed if NFTs are set to evolve and be part of digital and content marketing. Here are some things we expect to see in the near future:

Arts

https://www.adweek.com/media/nfts-2-0-whats-next/

Interesting NFTs
Bored Ape Yacht Club #7090
The Bored Ape Yacht Club is a collection of 10,000 unique Bored Ape NFTs— unique digital collectibles living on the Ethereum blockchain. Your Bored Ape doubles as your Yacht Club membership card, and grants access to members-only benefits, the first of which is access to THE BATHROOM, a collaborative graffiti board. Future areas and perks can be unlocked by the community through roadmap activation.
Women Unite #14
A distinctive and vibrant collection representing the rise of the divine feminine. Power, Love, and Beauty portrayed through the creativity of fashion, photography, and NFT.
The Moth Catcher
In this psychologically bed-headed portrait, a creature sets in a trance; his eyes devolved and vestigal, his third eye open but hardened and in a form resembling a Sharingan. The imagery therefore expresses an awareness existing in corporeal introspection. The creature’s mind sprouts, on the left side, an emerging face, grinning. To the right side of the head, red tentacles and fingers intertwine–a collaboration of invertebrate and vertebrate consciousness cooperatively handling paint brushes of the sort used to build an oil painting. The neck and throat bristle with random thorns, as from a rose or the upper portions of a beak sprouting from its flesh. The neck itself disassociates into layers of membranous material, terminating upon an abstracted base of convoluted forms composing its body. The nose is virtually non existent, more a sinus reiterative of the shape of the third eye. Set against the exposed teeth peering out of thick, meaty cheeks, a skeleton-like impression results. That impression sets behind a visceral set of lips and tongue, which is the creature’s prime seat of awareness. Sensual, organic, the tongue organ hangs, meaty, and with consciousness of a sea cucumber. It illuminates at the tip, drawing the attraction of a nearby moth–with mystery of purpose.
#3959
By OthersideDeployer
The Switch
The Switch is a unique, “one of one” NFT that demonstrates the evolution of artwork in the digital realm. The Switch is developed to change form at a specific point of time in the future, known by Pak. The evolution is determined and rendered immutable by smart contracts, or self-executing code on the Ethereum blockchain.