NFTs are known for their base prices and meme images, but the truth is that they offer all companies, crypto-based and traditional, a useful opportunity to get in touch with customers. With NFTs, companies have the opportunity to create digital assets that can be highly customized and customized, giving customers a more personal and engaging experience. But how can companies incorporate NFTs into their platforms or even into routine operations? What are your options? Let’s look at a few examples.
Accelerate customer retention with NFTs
In the entertainment industry, video streaming services can now offer subscription-based video-on-demand with increased subscriber retention, solely through the use of NFTs. what does it look like in action? A company can host an event where all tickets are tokenized. For example, the sold-out event of the popular British rapper Central Cees was attended by 468 visitors – they were also NFT holders. It follows that the best way to speed up customer adoption of NFTs is to use intuitive platforms that provide the easiest way to acquire an NFT. For example, a customer can purchase a digital ticket by following the simple steps to purchase on OpenSea that appear on the platform’s website.
In short, the buying instructions should be kept simple. The product – including the NFT tickets – must have real value and the price must be reasonable. If all this is taken into account, the initiative is likely to be a success.
Procedures for implementing NFTs in streaming and sports
In addition to NFT ticket sales, companies can also combine tokens with additional benefits. For example, when organizing the Central Cee event, customers were offered unlockable perks with each NFT ticket, such as collectibles, merchandise, and a full membership card. It is crucial that when you buy NFTs, you offer the customers something extra that will make them loyal fans and generate revenue for the company.
The growing trend for NFTs in entertainment and sports
As the hype surrounding art and collectibles shows, the trend towards NFTs in the entertainment and sports industry will only increase. Sports brands have also begun to harness the power of digital collectibles, given the benefits companies can gain by integrating NFTs into their platforms. More than 20 Premier League football clubs are planning to launch their own NFTs.
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An example of this is the football club Como 1907, which has launched its own branded collection: The club’s owner held a digital auction with a number of benefits, including season tickets for all Como 1907 matches. The profits from the auction were donated to a non-profit organization.
What does all this mean now?
Overall, companies joining the trend toward NFTs can benefit greatly from this fast-growing technology. By taking advantage of the many benefits of this technology, they can increase customer retention and improve their bottom line from selling NFTs. Whether you’re into sports, music or entertainment, using non-fungible tokens is a great way to add value to customers while improving the business. Whether it’s selling tickets, offering unlockable perks and benefits, or even launching a collection, the possibilities are endless.
The NFT market is worth about $ 22 billion. And this is the right time to come in. But before investing in NFTs, it is important to understand what drives the value of NFTs; this would help one to make the right investment decisions that are not just based on guesswork.
NFT objects are classified according to their rarity, ie. their scarcity. The rare digital assets can be works of art by renowned designers or tokens marked by celebrities. The rarer an NFT is, the higher its value. If you want to spot rare NFTs, you can search for:
- The artist of NFT and his brand equity
- The technique used to create the digital object
- The current or potential effect of NFT on the user
A good example is the very first tweet by Jack Dorsey, the former CEO of Twitter, which was transformed into an NFT and sold for $ 2.9 million.
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The liquidity premium
High liquidity NFTs have a higher value as they allow for easy buying and selling. Traders prefer to invest in high-volume NFTs because the higher the liquidity, the easier it is to make money. Moreover, a highly liquid NFT often retains its value even when the secondary market platform is closed. Due to the value associated with liquidity, the embedded system devalues those NFTs that have not been traded for a long time. This creates space for competitive assets. The system will continue to promote asset liquidity as the market grows.
Some NFTs represent real objects, which increases their value in terms of tangibility, which in turn is enhanced by the immutability of ownership. This means that the ownership of an item can be established with an NFT. However, an NFT-based object is not always unique or rare. It comes down to demand, rarity and the personal impact it has on the users. For example, in an NBA NFT marketplace, the value of NFT collectibles from NBA games depends on whether the game is a final, which players are involved, how the environment is, etc. NFTs with material values usually have an expiration date and is therefore suitable for short-term investments.
Interoperability means the ability to use a token in different applications. Interoperability is a key factor in the value of NFTs as it has expanded the use of tokens. NFT players worldwide thus play a single game, which requires a huge ecosystem of use cases and games. Another way in which interoperability increases the value of NFTs is how easily partnerships can be built for the benefit of multiple parties, while expanding the scope of NFTs. For example, an NFT weapon can be used in various games. Because the ownership of NFT is already established, the parties do not have to do much to form partnerships.
Sometimes speculation can cause the price of NFTs to skyrocket. This can undoubtedly be a minor catalyst, if not entirely responsible, for the price increase. In 2017, for example, the price of CryptoKitty # 18 went from 9 to 253 Ethereum in just three days. Speculation naturally suits people. Everything such as price action charts, changes in NFT asset value and even certain uncontrollable events can lead to speculation and drive up NFT prices. Although a mindset rejects this idea, it is not impossible to believe that speculation will become an integral part of the NFT ecosystem.
The future value
The future value of an NFT is determined by its future cash flow and changes in valuation. As mentioned earlier, valuation is driven by speculation (one of the crucial NFT components). Another factor that contributes to price increases is “scarcity”. Together, these factors can enhance NFT value and attract new investors. For example, StockX, a sneaker marketplace, has a $ 1 billion valuation, in part because of the rarity component; it creates a market for rare sneakers, which encourages people to speculate in the price.
It is not difficult to understand NFTs once you get these key points right. Although the NFT market is already booming, it is expected to continue to grow. As it grows, so will it change. Make sure you stay up to date.
This post first appeared on Benzinga:
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