By: Marika Tedroff
“It’s just a jpeg!”
I’m sure you have heard this sentence when discussing NFTs with your friends. Indeed, it might seem rather crazy to spend thousands of dollars on a picture that people can just…copy. While there are other reasons for people to buy NFTs– such as the opportunity to join a community, make money or participate in the cultural revolution that is happening – we must also remember NFTs can be much more than just images. There are now projects in all kinds of categories, from gaming to fashion, art and membership clubs, music NFTs and casinos. Let’s look at a few projects that aim to be more than just jpegs.
Firstly, NFTs will undoubtedly play a part in the future of gaming and the metaverse. NFTs are well suited for this use case because of a variety of reasons, for instance, NFTs can be used as entry-tickets or as a form of currency (e.g. to get access to virtual land or special accessories in a game).
Some prominent examples include the ecosystem World of Freight which is a racing game using NFTs that generate tokens for their holders. The tokens can later be used to upgrade user’s digital vehicles and much more. Yuga Labs, the creators of the widely successful Bored Ape Yacht Club, recently announced a $450 million funding round to build an NFT metaverse, a new digital world that is completely decentralized and gamified. NiftyVille is building a GTA-inspired metaverse and Fractal is building an NFT gaming marketplace. In short, many projects are tapping into the metaverse, and NFTs are clearly part of the shift.
Another emerging area when it comes to using NFTs is gambling and sports: Slotie is one of the first online casinos on the blockchain and NFT holders are entitled to part of the casino's profits, NBA Top Shot allows you to trade NBA Moment Collectibles, and UFC Strike offers collectible NFTs from the UFC. Sorare, which sells digital soccer player cards that users can trade and use in a game, has seen great traction and was valued at over $4bn just a few years after launching. This opens up the opportunity for sports franchises to find new ways of monetization and connecting with their fans.
You might have heard about RTFKT - originally a creator of virtual sneakers - which was recently bought by Nike. Big, global brands now want to be part of the emerging NFT space, with players such as Adidas and Gucci creating NFT collections and partnering with creators and artists. We can also see this trend reflected in job ads, for instance, Gucci is now looking for a web3 manager to focus on their expansion into this territory. The fact that global powerhouses are investing in the space can be seen as a form of validation that the industry is no longer just a speculative area for hobby enthusiasts. NFTs are entering the lives of "mainstream" consumers, with more and more utility likely to follow.
There are also many interesting use cases popping up where NFTs are linked to physical assets. Earlier this year, Propy facilitated the first real estate transaction via an NFT. Large auction houses such as Sotheby’s have started experimenting with issuing an NFT together with the physical asset and at Koia, we are focused on fractionalizing collectibles and linking them to NFTs.
If you read our previous post on how to evaluate NFT projects it makes sense that all these NFT projects in specific verticals are popping up left and right. After all, we know that potential buyers want to be part of a community, and that utility is important in order to bring long-term value to holders. These NFT projects are centered around these very two factors - they tap into specific communities and focus on the long-term vision. Perhaps the NFT industry was never about pictures, but rather about facilitating new forms of interactions online, creating new intersections, and building the bridge to what the future might hold. One thing is for certain, it’s not just jpegs anymore.
Bio: Marika currently works in policy & product at TikTok. Outside of work, she likes to deep dive into discord channels, new NFT projects, and photograph weddings. Prior to joining TikTok, she worked in venture capital.
At Koia, we allow you to buy, trade and collect fractions of iconic assets, starting from $60. Our experts make sure to source and buy the best assets, and we take care of authentication, storage and insurance. All of the benefits, with none of the hassle.
The articles and information made available on Koia are provided for information and educational purposes only and do not constitute financial advice. You are advised to consult with an independent financial advisor for advice on your specific circumstances.