It is Not For Tomatoes.
Covering the topics of
Foreword, NFT Business
Starting NFTs Business
Advantages & disadvantages
Auction Process NFTs
Reserve price (Initiation)
Featured on Marketplace
“Any sufficiently advanced technology is indistinguishable from magic” - Arthur C. Clarke
Foreword, NFT Business
Technology advancements have paved the way for advancement and ease of living for human beings. Whether it be social media making a virtual community of distant people or it is self-driving cars roaming around highways. A big bang in technology occurred when humanity heard the name Satoshi Nakamoto, considered the founder of blockchain technology which is the base of Cryptocurrency. Bitcoin proved to be the first mover in this market and tapped it heavily, following the success of many ICOs (Initial Coin Offerings) were done by companies opening new horizons of fundraising.
This initial rise in the market of the blockchain gave a boom to several new, fully digitally enabled concepts. Cryptocurrencies are the most well-known example of this technology. Since the advent of crypto, an exciting new trend as non-fungible tokens (NFTs), has gained popularity.
The term NFT initially collected traction and became popular when it was initially found out that an art piece created by artist Beeple was sold for a solid price tag of $69M. A remarkable 2,100% growth was observed during the start of 2021, $2.5B in sales volume proved to be a great metric in order to judge the coming success of NFTs.
Being a non-fungible blockchain asset is what creates the pure quality essence of NFTs. The exchange of Bitcoin, actually lets you retain the exact asset similar to the exchange of paper currency. The fungible part of these assets allows them to be traded without losing any value and altering their nature.
How NFTs differ from other forms of trade currency is intriguing. The uniqueness is as these are saved on a blockchain as a code, these cannot be changed or copied. As this makes the similarity of NFTs impossible, they cannot be traded on a one-to-one basis like fungible tokens or banknotes.
The property of NFTs to be a specific kind of asset is what makes it the most value-added feature for business. A one of a kind unique experience can be granted to the users/customers/audience. When solving business related problems, imagination is the key and the sky is the limit because businesses can build anything that they can imagine in form of NFTs. Music, images, videos, Virtual real estate, and digital worlds are some examples of such deliverables and assets. The USPs (Unique Selling Propositions) can be created by incorporating NFTs in businesses, and the engagement of customers with services or product can be enhanced by the utilization of NFTs as tools.
Starting NFTs Business
Very Rapidly NFTs are developing the new arenas in terms of social status. When you look at some Twitter thread relating to crypto or dive deep into the crypto world, all you can notice in the interest of people with profile pictures of some sort of Avatar.
Many considered this to be a bubble that is building up for a sudden burst and all the hype will certainly fade. As we see the technicality behind this, we realize that there was a time when online transactions and credit card was considered a bad idea. So, all in all, NFTs are a new form of transaction and are a cultural shift millennials are excited about it and internet expansion and the impact of social media will greatly enhance this emerging market.
It has been a trend that people are widely impacted by the actions of the celebrities they like and the companies they are invested in. Several celebrities, big public companies and conglomerates seized the opportunity and invested both on a personal and brand level. This builds confidence in the general public and we are ready to see consumer-level transactions in terms of NFTs.
In terms of raising funds for the business and making it work, there cannot be any better time than now. Though this is a new technology currently proving its liability Fear of Missing out (FOMO) among investors is making deep pockets to invest heavily in this business. Investors don’t want to repeat the mistakes of not investing when Bitcoin was in approach earlier. And other than that, fortunately, crowdfunding is also an option where you can all or utilize NFTs to start a business of your own as well.
The NFTs Investing firm and consultancies are another fiat in this market where you can suggest to people and let them invest in blockchain-enabled technologies and buy-sell NFTs. It’s important to understand here that people are busy and no one would like to research and study all the little details of the business and understand the market. That’s the point where new arenas open up: NFTs investment firms.
Necessarily, business persons and people holding onto investment plans can allow their money to be invested into NFTs by utilizing your expertise in the area. Percentages on total profits are gained by this sort of work in the NFTs area.
The advantages and disadvantages involved
Since the advent of humanity, there has been always some sort of transaction involved. Give and take have been a fundamental foundation of the world order. Let it be the naked hunter-gatherers inside jungles or investment bankers in their decent suits inside big offices, everyone worked and is working to make the economy work. The flow of transactions is like the blood flow of the economy and it mobilizes the world. Some things have been, are and will remain a universal truth for fungible as well as non-fungible tokens. These properties can be detailed as:
The ability that enables the owner to prove the ownership makes its the primary benefit of non-fungible tokens. A single account is able to contain the linked ownership which is possible because it is being controlled by a blockchain network.
Secondly, NFTs cannot be distributed so the sharing among many different owners is impossible. And similarly, the ownership to be on blockchain and being controlled by distributed ledgers protects the originality in transactions, hence counterfeiting of NFTs is not possible and risk is eliminated. The consumers are saved by this feature.
The uniqueness and having a sole identity is considered a primary benefit of non-fungible tokens. Each NFT is saved and produced on blockchain technology and transactions are analyzed on distributed ledgers, pertaining to the fact that these are in link with one of a kind data. The distinct and rigid character of NFTs presents the potential that they carry for value addition in terms of an asset.
It’s a very safe and unique concept, as NFTs are on blockchain and distributed but are controlled by producers carrying the option of releasing quantity in limits so that the supply-demand is managed and supply scarcity can be created.
As like tickets are printed and made, in the same way, the author of some NFTs has the option of making duplicates. The blockchain plays a role and makes the NFTs immutable hence the validity is maintained and legitimacy remains.
The fact that NFTs are immutable makes sure that these NFTs have no effect by alterations, deletion, or swapping. This results that NFTs immediately promoting validity and being authentic as an attribute.
Taking the example of digital games, inside game purchases are certainly available in almost every game. Players are interested in buying those digital objects or options in order to enhance the experience of a game and to become good at that specific game. These objects and options are limited to that specific game and can be utilized just within that game. So if the game is not updated or it is out of trend, the buyers will lose the investment as well as those objects.
When it comes to the NFTs, the scenario is completely different. As of now the game makers and designers will use a digital wallet which is used to store any add-on or option that the gamer buys and it gets saved inside the wallet of NFTs. Now the game Players have the choice to use the in-app purchases outside of the game as well and they can sell them to get money or in exchange for some other assets.
As NFTs are made and stored on digital distributed ledgers, this inclusion of smart ledgers/certificates allows the transferring really simple. These digital ledgers ask and demand to the point specific criteria among the buyer and seller that has to be followed before ownership is transferred.
Auction Process NFTs
The creation of NFTs is similar to that of cryptocurrencies – they are made by adding them to a ledger based on a blockchain.
If the NFT under discussion is digital artwork, so you can make it with the addition of an artist’s signature. The ledger on blockchain will be containing metadata – also the original creator – and all the transactional history of the piece.
The auction of NFTs is dependent on the platform which is offering the sale and purchase. Every platform has different ways to do this work yet we can discuss the general paths and steps below:
Ethereum Based: The blockchain is responsible for collecting and storing data of all the sales, purchases, transferring, claiming and bidding on an NFT. Ethereum blockchain is responsible for the record of these transactions. Ethereum is the name of cryptocurrency which is utilized in terms of all transactions on the network controlled exclusively by Ethereum. Most of the platforms use ETH (Ethereum) to get the bids and make sales of the NFTs and also the creators are paid in form of Ethereum as well.
Reserve price (Initiation): As with any other auction, here creators are responsible to set a base price for the NFTs’ auction and interested buyers have to place bids that are equal to or above this base price.
Countdowns: As soon as the bid is initiated and placed on any NFT matching the price or beyond the reserve price, a countdown timer starts and the auction starts. The auction ends when the timer of the countdown finishes.
Time Extensions: Extension in time works like this, if some buyer places a bid within the ending quarter of an hour of the auction, the timer will be set back 15 minutes. The addition of this time gives an opportunity for all buyers to have one concluding chance of placing a bid. These extensions in the time period are allowed to go indefinitely until and unless other bids are received within the last quarter of an hour of the process.
Let it be some clothing items, a food item or maybe anything of trade value; the promotion and marketing are the core essence of it and without a proper strategy, the sale can be a hard task. The same process and culture go for the NFTs. Therefore we discuss some of the promotional tactics that have proven and have the potential to make this work.
NFT Calendar is the system developed to get together various best NFTs from all marketplaces and merge those into a single calendar. For NFTs collectors and buyers who don’t want to rush into different marketplaces, this is a great resource and accumulates all the best assets in a one-stop-shop and lets the buyer discover all awesome releases.
It doesn’t take much time to get the portfolio or single NFT uploaded on the platform of the calendar. All needed is to fill in the form with the main details. Once it is submitted, it is available on the list soon after a review from the team.
By using this resource the NFTs can be promoted and buyers can see the work under an authentic service provider. This way of promotion enhances the chances of getting artwork sold.
Featured on Marketplace
The promotion of this sort happens and is discussed directly with the marketplaces. KnownOrigin is an amazing example of a featured marketing marketplace, they create a page every week with 4-5 featured digital NFTs and a countdown is initiated to take bids. MakersPlace also is in this market by creating pages of NFTs with the necessary description, images or teaser, and countdown. Nifty Gateway approaches this by posting a ready-made schedule for the week to come. When the NFTs are turned to the featured drops, marketplaces also promote them on their respective social media.
Enhancing awareness has long been associated with the word of mouth marketing techniques, in this era of social media influencers, they are the first kind of marketing way that comes to mind. Mostly influencers and social media stars are followed by a big loyal fan following who actually follows them and trusts their telling.
Influencer marketing can be utilized if no major and well-known artists can be acquainted who can also have no worries to promote NFT without any cost.
There are several groups on social media circles like Telegram and Discord. Here creators and content makers can be reached out and get acquainted, and crypto art can be promoted. Joining the discussions, being calm, and trying my best to make participation in these groups can make it possible to get artworks among top circles.