Add Utility to Your NFTs
Looking to start an NFT project? There are many factors that would determine the success of your NFT project. In order to achieve long-term value, your NFT would need to have utility so that investors/collectors would want to be part of the community. So, how can you make an NFT with utility? We’ll break down the top ways in this article.
Top 10 Ways to Add NFTs to your Business
- Create Membership NFTs that allow for VIP access
- Turn Your Artwork/Collectibles into NFTs
- Give Early Access to Merchandise Sales to NFT holders first
- Use NFTs for Shared Revenues with other Holders/Artists
- Use NFTs for supply chain tracking. Link physical goods to NFTs
- Turn Your Music into NFTs
- Host Events in the Metaverse for NFT holders Only
- Collab with other NFT Projects to form Strategic Partnerships
- Use NFTs as Digital Fashion or Wearable Luxury Goods
- Use NFTs to Secure your Platform
What Does NFT Utility Mean?
Utility NFTs are the NFTs that have an underlying valuable and practical application. One of the most common phrases associated with NFT utility meaning is “a real-world use case”. Utility NFTs are considered valuable depending on the opportunities and access that they provide the NFT collectors or holders. One NFT by the digital artist known as Beeple sold for a jaw-dropping $69 million in early 2021, while many others have fetched multimillion-dollar sales prices. The potential for big money is leading more people to create NFTs in the hope of cashing in on the current craze.
Utility NFTs, also known as NFT 2.0, is based on the needs of the consumers. Fantasy sports NFTs, gambling NFTs, Social NFTs, community NFTs, and in-game NFTs are the five types of utility NFTs that are widely available. Exclusive experiences, special events, airdrops, and new products are all available to holders of utility NFTs. Artists, investors, brands, and gamers all benefit from utility NFTs.
Examples of NFT Utility
One of the most recent NFT projects with utility is the Coca-Cola NFTs. Coca-Cola has been selling its collectibles in the real world for a long time including the vintage German plastic cooler that goes for $500.
Coca-cola was offering four NFTs; one of which was a wearable NFT jacket inspired by their old delivery uniforms. The wearable quality of the NFT jacket adds utility. Also, the winning bidder for the NFTs receives a physical Coca-cola refrigerator; the SMEG FAB28 retro made-in-Italy; a new product.
Utility-based NFT projects like VeeFriends and BAYC provide utility to their NFTs by representing VIP membership cards on the NFTs. When you buy an NFT from BAYC, you gain a lifetime membership in the BAYC community. You’ll also have access to VIP events, members-only games, and digital merchandise.
The NFTs enable holders of VeeFriends by Gary Vaynerchuk to have admission to events, physical lectures, and members-only eateries. Gary stated that the goal of his NFTs is to provide individuals, brands, and enterprises with NFT utility ideas.
Step-by-Step Guide to Creating Utilities in NFTs
These are the basics of creating an NFT utility. You’ll need to determine what unique digital asset you want to turn into an NFT. It can be a custom painting, picture, music, video game collectible, meme, GIF, or even a tweet. An NFT is a unique digital item with a sole owner. That rarity gives an NFT value. Make sure that you own the intellectual property rights to the item you want to turn into an NFT. Creating an NFT for a digital asset you don’t own could get you into legal trouble.
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Redeemable NFTs Creates Utility
Redeemable products, whether physical or digital, are associated with some of the best NFT utility ideas. As an artist, you may provide a specific painting that can be redeemed when someone purchases your NFT. You could either send them a physical painting or a digital painting after they purchase your NFT. Another suggestion is to arrange a competition in which the person who has the most NFT tokens receives a valuable item, such as an original piece of hand-drawn art from you. People enjoy having access to original and uncommon art, thus your NFTs will become utility-based NFTs as a result.
Link your NFT to Property Rights or an Asset
Find a real-world need and find a method to incorporate it into the NFT environment. When investors buy and hold shares in the stock market, for example, they receive dividends based on the percentage of shares they own. Similarly, you can provide a proportion of dividends to be paid to NFT holders after a set length of time. You can also explore real-world areas where you can contribute value with your NFT and benefit your holders. Binding your NFTs to specific material and granting transferrable ownership rights are two examples. If your NFT provides free online courses and the holder sells them to someone else, the new owner should be able to use them.
Choose your NFT Blockchain
After you’ve chosen your one-of-a-kind digital asset, you can begin the process of minting it into an NFT. The first step is to decide the blockchain technology you’ll utilize for your NFT. Ethereum is the most popular among NFT artists and creators.
Tutorials on How to Mint your NFT Collections
There are also quite a couple of tutorial videos on YouTube teaching you how to mint your own NFT collection.
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Marketing your NFT Project
The final step in the NFT minting process is to pick how you wish to commercialize your NFT project. As NFTs become more popular, their sale prices are growing. As a result, NFT creators stand to profit handsomely. Given the fees associated with minting and selling NFTs, not all NFTs will even sell, let alone make their creator any money.
At Crowdcreate, we have an expert NFT growth marketing team handle your influencers, PR, and strategy because we’ve helped many of the biggest NFT projects sell out their NFTs. Refer to case study: NFT Influencer Marketing – Divine Anarchy | Crowdcreate.
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