During the cryptocurrency bull run, overpriced digital art and jpegs of eccentric apes were the main reason most people got into NFTs. They did not have much care for the underlying technology and, as a result, its potential in multiple fields across traditional industries has been somewhat forgotten.
The technology today is being used for only around 20% of its true capabilities. There is much more to NFTs beyond just being a representation of someone’s ownership over digital items. For example, NFTs can be used as tickets for events, recording important information and storing it on the blockchain, instead of using barcodes or QR codes, which can be easily faked.
In the supply chain, fashion powerhouses like Prada and high-end luxury goods like Cartier are using NFTs to trace their products on their respective supply chains.
In the gaming industry, NFTs seem like a particularly great instrument to make use of: gamers want to own the items and collectibles they earn through playing, and NFTs provide that ownership and allow them to move their items whenever they want. This also includes the ability to sell those items in the secondary market for real money, thus adding another practical utility function to NFTs.
We’re now seeing multiple trends catching the attention of users and investors alike, and the outlook for NFTs in 2023 can be very bright. However, to succeed Non-Fungible tokens will require new value and innovative approaches.
NFTs 2.0: The Rebirth of NFTs
The way I see it, one of the potential avenues NFTs could take in their evolution is NFT Token Offering (NTO), a new form of token distribution. Compared to traditional crowdfunding methods, an NTO can bring extra benefits to users, companies, and content creators beyond just giving them access to some of the project’s tokens.
Let’s take a more in-depth look at the advantages that an NTO can provide. First of all, NFTs offered via an NFT Token Offering should realistically be backed by the company’s native token which is already listed on exchanges and has an ongoing market rate. This gives the offered NFTs factual worth, turning them into a more viable investment option and greatly lowering the risk of investors losing their money.
Furthermore, the distributed NFTs can contain not only tokens, but also various prizes and extra bonuses, such as cashbacks, shortened vesting and lockup periods, etc., hidden inside them.
All of this serves to revolutionise the NFT ecosystem, bringing new meanings to this market. Following the NTO model can allow NFT companies to grow their investments and expand their communities, while producing new utility and revenue opportunities for crypto users and content creators.
An important benefit of NTOs is that projects can organise token sales without putting selling pressure on the price of their main token. Instead of the typical mechanism, most of the tokens included in NFTs can have different lockup and vesting periods, making them more flexible for investors.
Additionally, if the project has integrated Web3 wallets such as MetaMask into its offering, this would also allow users to buy and sell their NFTs on the secondary market, since MetaMask is integrated into various NFT marketplaces.
Final Thoughts: NFTs Are Not Dead – They’re Evolving
In conclusion, I would like to reiterate my view: 2023 could be the year of rebirth for NFTs as a technology with potential use cases beyond what we’ve seen so far. The industry has the chance to recoup the volume levels of 2021, but with a better infrastructure, better tokenomics, and more added value to the end user.
There’s a lot of room for improvement, and a lot of development is happening behind the scenes. As the industry moves forward, it will likely continue to meet detractors and crashes, and will innovate itself to overcome barriers. However, one thing is clear: NFTs are here to stay, they just need some more boost.
Vladimir Gorbunov is the Founder and CEO at the crypto firm Choise.com. He is a professional entrepreneur with long-standing experience in establishing and developing fintech projects. The total capitalization of Vladimir’s projects exceeded $1 billion at the beginning of 2022. As a professional businessman, he is interested in developing new, never-before seen solutions that would benefit society and improve the quality of everyday life.
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