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In 2021, non-fungible tokens (NFTs) emerged from seemingly nowhere. Achieved approximately $41 billion in salesThis explosive growth coupled with a buzzy reputation may rightfully leave startup leaders wondering. Are NFTs a smart growth opportunity for young businesses, or are they just a flash of inspiration and a burn?
After the initial buzz around NFTs, the market took a big hit. Decrease in sales volume Ethereum, the cryptocurrency on which many NFTs are based, has fallen in value. Together with the NFT market it’s starting to stabilize now With the prospects of cheap Ethereum mining looking bright, it’s easy to get a real answer to the question of whether to dig into NFTs.
Related: The Birth of Digital Assets and the Growth of NFTs
On the other hand, severe energy inefficiency, one of the major weaknesses of the market, also Will be fixed in the near future, removing another obstacle to growth. In other words, there are strong indications that NFTs will continue to thrive in the near future. But do they make sense for your fledgling brand?
Opportunities in the NFT market are expanding
In many ways, NFTs are just getting started. New marketplaces will continue to emerge, facilitating NFT payments in fiat currency. Metaverse and video games begin to make the most of his NFT, selling transferable avatars and in-game items to players that they can truly call their own.
With the right approach, there is an opportunity to capitalize on a steadily growing tech-savvy global audience willing to purchase digital products with remaining royalties embedded in blockchain contracts. , that doesn’t mean that entering the NFT market will automatically be a slam-dunk for every business.
Despite their trendy reputation, NFTs are no magic money makers. Like any product, it requires proper marketing, a thorough business plan that covers the associated costs and risks, and a reliable team behind it all. Launching an NFT also requires a thorough understanding of where it fits into the overall company vision. Here are some things to consider when pondering your decision regarding NFTs:
1. Learn about the behind-the-scenes aspects
before you Participating in this space requires starting with a solid understanding of blockchain technology and NFTs. We have a wealth of resources to help you learn the ins and outs of technology. NFT Now A solid place to start.
Related: How Blockchain Technology Is Changing the World From Metaverse to NFTs
After understanding the process behind NFTs, hands-on education should also be provided. To a friend or colleague he creates a simple “test NFT” that he can sell for $1. Examine the entire process to see if it’s something you and your customers can repeat enough to generate a viable business line.Having a basic understanding of the process and knowledge of how and how Reasons why the value of NFTs fluctuatesto help you decide if joining the NFT space is a good fit for you.
2. Determine if potential NFTs are of real value to customers
In some ways, the popularity of NFTs is not much different than the popularity of mobile apps over the past decade. As a software engineer, I was approached by a lot of people with the impression that he could be Zuckerberg overnight, if only he had a mobile app.
In most cases, the mobile app they wanted to build works just as well or better on mobile browsers. For these entrepreneurs, building an app means wasting money on something their business doesn’t need or users don’t want.Today many entrepreneurs make the same mistake with their NFTs is committing
Do not create NFTs in hopes of generating business buzz. Only launch an NFT collection if you are serious about staying in the market for the long term and believe that your collection has unique value that resonates emotionally with NFT buyers. Ask yourself if a third party wants to buy NFTs from a buyer for resale purposes. If the answer is no, it’s not on the market.
RELATED: Use the power of NFTs to make your brand a household name
3. Evaluate all costs to launch an NFT
While it’s true that you might be able to create and list an NFT at a cost of $100-$700, that’s not always the case. represent the true cost Successful NFT launch.
For example, if your current consumer base consists of people who love old-school art and collectibles, you may need professional help to reach a new, younger demographic of NFT enthusiasts. This can easily turn into a marketing budget of up to $30,000 (or more) just to kick off the right branding, storytelling, and creative direction. Take all these costs into consideration when deciding whether to have
4. Create a follow then launch the NFT — not the other way around
NFTs should not be viewed as a “build it and it will happen” technology. You need to make sure you have a strong audience who want to buy what you’re selling.NFTs are still in a relatively early stage, so entering this new market requires taking some risk. is needed. But that means there is still room for growth.
Art has been the main focus of the NFT market so far, but many other applications are just being explored.platforms such as DecentralandFor example, we use blockchain technology and NFTs to build entire virtual worlds. Everything is owned by the people who use it.
NFTs offer a world of possibilities, and it is forward-thinking entrepreneurs who help realize that potential. But wanting to be one of these entrepreneurial girlfriends isn’t enough. Must have a reasonable plan and vision in the market. Otherwise, you will get burned.