NFTs could potentially open up a secondary market of in-game items. Players could buy and sell tokenized assets without having to go through the developers.
It should come as no surprise that artists are pouncing at the opportunity to tokenize their music. Kings of Leon recently became the first band to release a tokenized album.
Within days, the band generated over $2 million in NFT sales of the album.
Calvin Harris is one of the latest artists to jump on the bandwagon. He and collaborator Emil Nava released an NFT for the video Technofish.
About NFTs, Calvin Harris said: “I haven't really realized the scope of what an NFT can be, I don't think any of us really have”
Going on to say that NFTs can completely revolutionize the music industry.
NFT body parts
You read that right.
Oleksandra Oliynykova, an ITF-ranked player, recently tokenized a part of her right arm in an attempt to auction it off.
Twitter’s CEO, Jack Dorsey, threw his hat into the NFT ring as well, in the form of a tweet. His first tweet on the platform was at auction for a few weeks and eventually sold for $2,915,835.47.
He donated the proceeds to GiveDirectly for its Africa Response fund.
Non-Fungible Tokens And What They Mean For Creators
The first question people ask is: what does NFT mean?
Naturally, the next question is almost always: how can I use them to make money?
We’ve already been over a few examples. Beeple is the most notable, and it’s the simplest way to use NFTs to generate revenue.
Tokenize some of your work, sell it on an NFT marketplace, collect a profit.
Pretty simple, right?
Well, not exactly.
YouTuber Logan Paul is another example of an overnight NFT success. Paul tokenized a stylized image of himself holding Pokemon cards.
He “minted” a set of 3,000 NFTs and sold them for one ether each (then valued at around $2,000). He sold 1,772 and destroyed the rest of the run for a total income of $3.5 million.
In one day.
Can you spot the common thread between these two instant NFT millionaires?
It took them years to develop the follower base needed to pull off a stunt like that. Logan Paul is one of the most notorious creators of his generation, and Beeple spent 13 years creating the collage auctioned at Christie’s and he had a large enough fanbase.
If a completely unknown creator without hundreds of thousands of Twitter followers did the same, would he get as much money? Not a chance.
But that doesn’t mean you need to wait years. You can use NFTs in a lot of ways.
1. Sell NFT Art
We already went over this just above. Selling NFT “crypto” art is a valid strategy due to the novelty of the concept.
But that won’t last very long, and little-known artists will soon see diminishing returns.
Using an NFT marketplace to do so is an option, but you’re likely to get lost in the mix because creators are flocking to NFTs in droves.
Below, you’ll find some of the most popular marketplaces that you can use right now to mint your NFTs.
2. NFTs as a Loyalty Program
You could use NFTs to reward your loyal followers. They could function like a loyalty badge that grants benefits down the road.
In this loyalty program scenario, the NFTs price isn’t the main form of revenue. Instead, you’re securing your followers’ continued loyalty and getting one step closer to turning them into true believers.
3. NFTs As a Membership Club
You can use NFTs to gate access to exclusive content.
Think Patreon, but you hold all the cards, and you’re not beholden to a platform.
NFTs would serve the same purpose as a wristband at a concert. All someone would have to do is show proof that they own one of your NFTs and get access to your content.
4. NFT Royalties as a Revenue Stream
So far, we haven’t talked about how NFTs can be set up to give the original minter a cut of every sale.
As a creator, that means you would get a kickback every time someone sells your NFT. Forever.
So even if you sell the NFT for a modest price, you never know how much it could sell for in the future. And that’s a stream of revenue that you’ll always have as long as the NFT exists.
5. Teach People About NFTs
Are you one of the early adopters of NFTs who have been active in that space for a long time? People are dying to learn what you know.
Look at these Google trend results from February to March, 2021:
You can cash in on your NFT knowledge by creating a course and sharing your knowledge. And you can use our tool to do that in minutes. Get started for free right now at Hyax.com.
Tokenizing Physical Objects
A lot of people are thinking ahead to the potential that NFTs have for physical objects.
One of the most prominent examples is the secondary market for sneakers. Manufacturers are well aware that most of the profit comes from aftermarket trading in that space.
However, there’s no way for them to access it. Once you buy sneakers, you can sell them and generate a profit without responsibility to the person who sold them.
What if when someone buys a sneaker, they also sign a contract saying that every time they sell it, they’ll give a percentage of that sale to the manufacturer?
How much value do you think one pair of sneakers could generate?
Probably tens of thousands of dollars in the long run.
That’s just one of the possibilities that NFTs promise.
Another example is fine wine.
Ernst and Young recently came up with a solution to simplify investing in fine wine. With wine, where it comes from is everything, so tracking and proving a wine’s origin is a critical process.
NFTs make that process instant. Every time a transaction takes place, it’s recorded in the blockchain. Even a single bottle can be tokenized, and its sale tracked at all times.
The Future of NFTs: Passing Fad or The New Normal
NFTs are as new as they seem.
One of the first non-fungible token projects was Cryptopunks, which was released in 2017. It consists of 10,000 unique pixel art images that Ethereum users could claim for free.
Ten thousand people quickly snatched up the Cryptopunks, most probably unaware of the implications.
Today, the average price for a Cryptopunk is around $45,000, according to Nonfungible.com.
Can we expect that meteoric rise to continue?
Will NFTs put you on the fast lane to a life of luxury?
It’s hard to say. Most people who are serious about it understand that NFTs are experiencing a bubble.
Will that bubble burst? Yes, it will. But nobody knows when.
In the meantime, there’s every reason to expect creators, manufacturers, and savvy entrepreneurs to come up with new and exciting ways to use NFTs.
The current NFT craze won’t last long.
But that doesn’t mean NFTs are going away. With the right attitude and a little creativity, you can be the next creator who uses them to win big.
How do you create an NFT?
By now, you should understand the basics of NFTs. But there’s still a whole lot to learn.
Specifically, how to make an NFT (also called minting) and how to sell it. Let’s take it one step at a time and learn how to make an NFT using readily available methods.
You don’t have to be an Ethereum expert or even know much about crypto at all.
Step 1: Pick Your Blockchain
The first step to minting your first NFT is to decide which blockchain it will live on. If you want to get right into the action, that’s going to be Ethereum. Ethereum is the leading NFT blockchain at the moment.
If you think you’re ready for a challenge, here are some other available options:
Binance Smart Chain
Flow by Dapper Labs
Token standards are different on each blockchain, so you’ll only be able to sell your NFT on the blockchain where it’s created.
Tackling each blockchain separately is outside of our scope here, so let’s assume you’re not a glutton for punishment and chose the Ethereum blockchain.
Set up an Ethereum wallet that supports ERC-721 tokens if you don’t already have one. Here are a few options:
Regardless of which platform you choose, you’ll need to create an account and link your Ethereum wallet.
Mintable is one of the most accessible platforms, and you can mint your NFT for free.
All you have to do is click on the “Mint an item button” in the top bar menu.
When the popup window shows up, click on “Create a new item” and follow the on-screen instructions.
It will ask you to choose an item type and a few more basic things. As soon as you’re done, you’ll sign for the transaction, and you’re off to the races.
Here is an excellent resource that can help you understand the process better:
You’ll be able to sell the item on the Mintable marketplace within minutes after you’re done.
How To Sell NFTs
Selling NFTs is as simple as creating them.
Every NFT marketplace uses a similar format. Your account will have an area where you can see your currently owned NFTs.
There, you’ll find the “Sell” button and click it.
After choosing a few basic things, such as the sale price, you list the item, and it will appear on the marketplace. When someone buys your NFT, the marketplace will transfer the sale price to the wallet you associated with your account.
Caution: Some platforms have a listening fee which you'll need to pay to complete the listing. It’s usually not much, but it will cut into your profits, especially if you list one item at a time.
NFT stands for non-fungible token. In a nutshell, they’re just records in a blockchain tied to some asset.
The concept is simple enough. The challenge lies in coming up with ways to use that concept to your advantage. The most apparent vehicle (digital assets) has already been tapped.
Now, you can either continue down that path and try to make it work or come up with something totally new and exciting.
The stage has been set, now get up there and show that world what you’ve got.
What does NFT mean in art?
NFTs are non-fungible tokens. They’re a unique record that acts as a certificate of authenticity when they’re tied to a piece of art.
When someone buys the associated art, they receive the NFT and can become the owner of both. The NFT is recorded on a blockchain, typically Ethereum, and every sale is also recorded, so ownership can always be verified.
What does NFT mean in crypto?
NFT stands for non-fungible token.
Much like a crypto coin, a crypto token is a record on the blockchain. It can be owned and traded by users of that blockchain.
Non-fungible means something that a nearly identical item can’t replace. Stocks, for instance, are fungible because every stock in a company is the same as any other. Diamonds, on the other hand, are non-fungible because every diamond has minor differences from every other.
What is the point of an NFT?
The purpose of NFTs is to track an asset’s digital provenance so that whoever owns it can prove ownership. More generally, it’s a way to create artificial scarcity of something to increase its value.
How much does it cost to create an NFT?
The cost to create NFTs is tied to the cost of executing a contract on the Ethereum blockchain. As of this writing, the price to mint an NFT starts at around $50 and can be as high as $1,000, but minting prices are highly volatile and currently hard to predict.
Jack Paxton is the co-founder of VYPER, a marketing tool that helps brands build email lists, social followings, and revenue using viral giveaways, referral, and reward programs. After millions of dollars spent testing different marketing strategies at his marketing agency. He then also co-founded Hyax a fast, conversion & design-focused course and funnel builder for creators.