Understanding NFTs: A Simple Guide to Everything You Need to Know
If you are in the gaming or arts scene, then NFT or non-fungible token is not new to you. There’s no doubt that this cryptocurrency phenomenon has taken the world by storm. But also bringing a lot of questions along; how do they work? Can NFTs make you good money? The answers to these questions are topics of discussion in this article.
Well, before I share my answer, let’s state a fact here; NFT is such a broad topic which depends on how you look at it. So, what I am about to share here is my opinion as someone who works in this field. But for you to build your own opinion and form your answer, you’ll need to do your homework and you’ll find lots of opinions that contradict each other.
The simple answer is yes. If the NFT is linked to something bigger than just an image, video, article, or music. To elaborate further, when you buy an NFT you are buying the code/hash that links to the NFT which means you can have the same artwork uploaded on different blockchains – for instance Solana and Ethereum – or even copied and uploaded by different owners on the same blockchain. Therefore, most NFTs are not a long-term investments and give no real value.
Can my NFT be protected by copyright?
Your newly bought NFT isn’t protected by any law. People can still copy and/or resell it on the Blockchain.
This is a point that needs to be put into consideration and I believe that soon there will be a law/strict regulations to protect your NFTs. So, for the time being, your original work can be protected by law but once it is minted on the blockchain, it can’t be protected by any law. To make it simple, the code linked to the image isn’t entitled to copyright.
Take for example the dispute of Larva Labs – which created the CryptoPunk project consisting of 10,000 unique characters in 2017. On July 1, 2021, Larva Labs, one of the most well-known NFT creators, submitted a Digital Millennium Copyright Act (DMCA) takedown request to the NFT platform Foundation for the online display of CryptoPunk work presented by Ryder Ripps as a work of his own. The dispute, which is still ongoing, demonstrates yet another potential obstacle for self-declared crypto-artists that have plagued creators since the dawn of time: copycats. ( you can read the article on Reuters)
But even before going through the copyright, you need to know whether your NFT is unique or is part of a series. For example, the person who creates the NFT can choose to sell it as a unique 1 of 1, or multiple 1 of 1000 copies which is the same concept of token /coins. The more copies the lower the NFT cost and vice versa.
Can an NFT be copied?
Yes, it can be copied and resold on the blockchain. Therefore, it would have been of great help if there were a way to make sure that in downloading users would get a super low-res file or one with lots of watermarks. But as straightforward as this sounds, sadly this isn’t implemented yet.
What NFT to buy now?
I will only be buying an NFT that is part of a bigger picture (Like utility, metaverse, gaming so on) rather than a simple image, but hey, if there’s an NFT you came across and loved, then, why not own it? This isn’t just about making money; it is also about owning something you love and supporting the creator
Can NFT make you money?
Yes, it can make you super-rich but still, you can end up making nothing as there is a higher risk than just buying shares or tokens/coins of projects that are established. This is because you are getting into something new in its the early stages and will still grow and evolve into something massive. NFTs are bound to become a part of a billions-dollar ecosystems such as the gaming industry which is worth $152.1 billion. The $41.7 billion movie industry, or even the $7.1 billion music industry, and more.
What is coming next to NFTs?
As a gamer, I want to see AAA gaming brands jump in and build a well-designed game and fair eco-system for people to trade their gaming NFTs. Also, it is an opportunity for games to connect within the same category. For example, imagine if you bought a you, which you can move between DOTA games with a minimal gas fee.
Soon, we will see more games that will allow in-game currency sales in which these tokens will be traded between players for game goods and away to maintain a healthy in-game financial economy so on.
And if you buy NFTs like CryptoPunk for 5.5 million, Beeple’s Ocean Front for 6 Mil, you can hang it in your apartment in the Metaverse. This can be unique as the game/metaverse won’t accept except to integrate your NFTs until it’s been verified to ensure no duplication..
What are the top 5 most expensive NFTs?
Pak’s ‘The Merge’ — $91.8m
Everyday: the First 5000 Days — $69.3m
Beeple’s HUMAN ONE — $28.985
CryptoPunk #7523 — $11.75m
CryptoPunk #3100 — $7.67m
source: dexerto.com
Now, how will NFTs help you as a marketer and how to use it?
As with any new channel, those who jump in first will get the highest engagement, recognition, and lowest reach cost. Think of TV earlier vs. now and. Ads back then were easier, more impactful, and more seen in comparison to the time being 86% of the ads are being skipped.
The same applies and expect to happen with NFTs. Currently, not many brands have jumped in yet. For instance, special wearable NFTs from ADIDAS vs. when we start having the other 100 brands to choose from. Simply brands have less clutter and almost no options to pick therefore the cost to get your audience or make them a fan would be cheaper and easier to acquire.
Also, at the moment fashion brands are jumping on the NFTs space but let’s go beyond fashion and take a game like Fortnite as an example and how can brands jump into this space:
- Buying The King by burger king as your character companion
- Buying Dior Dress/Suits for a big in-game gala event
- Buying Eminem soundtrack to be able to play it in your in-game house, where you can also buy special interior design NFT to help decorate the house.
- Or even hang your minted images or buy a designer art frame and hang it in your in-game.
The creativity is endless here, and the demand is high with a very low supply. Think coffee, tanning creams, tooth whitening paste, Gym products, theatres, and the list goes on and on.
So what are you waiting for? It’s your time now to seize and create opportunities into the NFT world. Call the developer or consult with an expert to see how you can integrate your product or service and start engaging with your audience by owning the space while you can.
