The Internet has opened new doors of technological ventures that might not be what we need. But, we cannot deny the audacity of the enterprise we possess. We love to be in pursuit of transforming the world for the better, and we crave change.
One such wave of new beginnings is NFT - A non-fungible token. It is the new buzzword for tech wizards and a void of confusion for others. Be it as it may, you should be aware of the possibilities which come with NFTs.
You are reading this post because you are a creator, and you are in for a treat.
But let's be pretty clear on what NFTs do, and let's fall back to the basics.
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What is NFT (Non-Fungible Tokens)?
If you are an internet user, you would already be aware of the hype of our subject. Creators are rooting for a new way to earn money and share content ownership, and people are eyeing it as a new platform for investment. To be precise, everybody considers NFTs without knowing what it stands for.
First, let us understand what non-fungible is defined. It means a non-replaceable asset, an original creation with only a single owner. Secondly, a token is a currency we use to buy and sell NFTs based on blockchain. Every transaction gets recorded on the blockchain, which cannot be modified.
Thus, we trade non-replaceable assets by exchanging cryptocurrency based on blockchain. Generally, NFT sells digital art and collectables, but the goal is to tokenize every real-world asset.
What's the need to do it? NFT runs on blockchain technology, a public ledger that cannot be edited or hacked. Any asset owned in NFTs will share the credentials of the seller and buyer in an incorruptible ledger. Thus, NFTs create undisputed authenticity.
Why is it so popular?
It is obvious! Anything that makes you super-rich in an instant is an immediate hit. That's how human nature works. NFT sales climbed to a high of $11.6 billion in the fourth quarter of 2021. That's an insane amount considering that owners will never be able to experience their assets physically.
All the reasons that stand against NFT's popularity are the reason for its reputation. Unsurprisingly, millennials love it and see it as a new investment platform. Celebrities have also played their part in making NFTs acceptable, and famous names like Snoop Dog and Ellen DeGeneres have supported the wave of digital assets.
How does it benefit creators?
First, not everybody will gain success in the world of NFTs. They either do not have the clout or aren't that good yet, but they do have a chance to succeed. You can be a new artist experimenting with creativity or a seasoned creator with valuable experience. It doesn't matter, and what matters is that you try your luck before the world moves on.
You have been creating art, videos, music all these years without a place to sell your creations directly. Instagram and Facebook haven't helped you get paying clients. You will never know how YouTube works.
How about you show your skills in the new world? Maybe your content will reach the right people, and they will appreciate you and pay you for your efforts. It is simple, open for all, authentic, and a once-in-a-lifetime opportunity for you.
For example - Mike Winkelmann sold a collage of his earlier 5000 artworks for $60.2 million. That might be an extreme case, but that's not the last.
NFTs can be your gold mine if only you can innovate.
Understand the process
It is excellent to know that one can use NFTs to get rich, but the process of becoming a seller is equally essential. There are various blockchains and dozens of platforms that support NFT, and however, Ethereum is the most used and accepted one.
To start with, you have to mint an NFT to become a seller. The amount of money you pay is subjective. We advise you to opt for a platform that doesn't charge you for listing NFTs and only takes commission once your content gets sold. It is the most practical way to move, especially when new to this world. However, such platforms do not always use Ethereum, so you might be at risk of limiting your buying options.
You have to think about the wallet that will store your cryptocurrency and the NFTs you bought. Coinbase is a popular choice, but various wallets might fit better into your needs. Make sure that your wallet supports the blockchain that you might be using.
Creating an account would be pretty similar to what you are used to on other platforms. Remember, your password and secret phase are the only ways to enter your wallet and never lose them. Also, please beware of the scammers as they have eyes on new creators.
Next step, you are now free to create your first NFT. The content can be open for sale for a fixed price or an auction, and you can also choose to sell the content for once or multiple copies of the content.
Creating an NFT is the easy part, though. It is tough to sell your content amongst so many sellers, and you have to come up with a unique marketing strategy to rise above the noise, or you will get lost in the mass of NFT sellers.
Risks associated with NFTs
We would not like to share a biased opinion on NFTs. Like every other earning opportunity, it comes with its risks. The benefits outweigh these dangers, but the gambler must always know the loopholes.
It is a bit obvious. Scams are an undeniable part of e-commerce. NFTs do not involve legal names, and there is no face to trust. There are fake buyers and sellers, false marketplaces, and unverified accounts. There can be fraud projects and investors. This space asks you to keep your eyes open, or you will bite the horrors of extreme capitalism.
Excessive competition and unpredictability
NFTs are not for the faint-hearted. The marketplace is full of uncertainty, and the majority enjoys breadcrumbs, and suddenly someone earns millions for something very random. The notion that anything is possible is unacceptable for people who look for stability.
Also, there are so many sellers that you might need an out-of-the-box marketing plan to get more views. Everybody can create NFTs, and every new enrollment reduces your chance of getting noticed. Simply speaking, have a bold strategy to boost your earning prospects.
As of now, there is no legal definition of NFT. Although countries like the UK and Japan are trying to deal with NFTs, the legal system doesn't recognize it. All the scenarios ( good or bad) in the NFT marketplace are the user's sole responsibility as there is no regulatory authority. The NFT space is growing faster than ever into multiple dynamics. But, without compliance, it might never become part of the mainstream.
Cryptocurrencies have constantly been under attack for having negative environmental impacts. Blockchain data evaluation requires enormous energy. So much so that mining crypto is more harmful to the environment than mining gold. The CO2 emissions are considerably high, which we can't ignore. If you believe in environmental protection, NFTs come with a grain of salt.
Benefit for different creators
Digital artists are the biggest beneficiaries of NFTs ( after people selling collectibles). Art as an asset goes well with the concept of digital copies. Also, it allows creators to dodge traditional gatekeepers, cultural guardians, and sneaky mediators. A creator can sell art directly to the appreciator, a revolutionary change. You don't have to be at the mercy of dealers and galleries to get noticed by art lovers.
Moreover, unlike in the real world, it doesn't involve the vetting process. Thus, you profit every time your art is re-sold to another buyer. As a digital artist, you enjoy transparency, royalties, and blockchain-supported records for a lifetime. What else might you ask for from a budding marketplace?
Bonus: A single artwork can be fractionally co-owned by different buyers, and it drastically improves your chances of selling your art.
Musicians have always been in a hustle to market their music. Only a tiny percentage of musicians financially benefit from their creativity. But, NFT might change this structure. They can sell copies of their music (unique ones) to their fans. The digital marketplace improves their chances of getting discovered by a person ready to pay for their craft.
The system is also quite beneficial for fans. They can vote to shape their favourite musicians' career; they can get on a unique discord server with the artist they appreciate and also listen to unreleased music before the entire world. From a musician's point of view, it allows them to understand the psyche of their listeners. Isn't this a win-win situation?
Compare this with Spotify, and you will understand the difference. The streaming platform pays $0.0005 for every stream at its best, and this money gets shared with everybody who was part of the production process. Indeed, only the top artists enjoy while 99% of musicians hope for their next viral hit.
For example - The Euler Beats Genesis LP01 was sold for $500,000.
Video content creators
Video content has immense possibilities on NFT. When a meme gets sold for $500,000, a good quality video might break the barriers of expensive products in this digital marketplace. You don't have to create lengthy content to be sellable either. Short, intelligent, quirky, and informative content has more buyers.
Social media giant TikTok is launching NFTs. Technically, it is paving the way for other social media platforms to adopt the newest trend. Top moments on TikTok already run on Ethereum Blockchain, and the top six could function in the NFT realm.
Imagine what you can do with bite-sized video content. Anything that goes viral can fetch you an incredible amount of money in no time. Although not everybody will gain fortunes, the possibility of change is better than hopeless hard work.
We used three skill domains to simplify NFT's money-minting capabilities. However, any and everything can be sold through NFTs. Here, your creativity is the only thing that limits you. For instance - Cosmic dunk got sold for $208,000. These are trading cards featuring a video of LeBron James' dunk, and that's it.
You must watch out for great video content creators who might be giving authentic and valuable information.
Tips for creators
Before jumping on the NFT bandwagon, you should do complete-blown research. We have told you the basics, but the NFT space is full of opportunities, surprises, loopholes, and disasters. Look out for creators who sell the same content as you would share. If you don't find one, think of creative ways to enter the playfield. Read articles, watch videos, listen to experts and gain all the knowledge you can digest. We know you are not a geek, but the information is the tool to construct an NFT career.
Design your content
So, you are ready to sell. However, take time to create your product according to the needs of your audience. Not everything will get money via NFT; most content sells for less than $1000. However, few efforts can deliver substantial financial gains.
Nevertheless, you have to devise a content collection that beats all super-creative creators. You can't hope for success by throwing random content among buyers. Everything should be carefully planned and executed with flexibility. The digital marketplace is ever-changing, but the base of your creations stays the same.
Let people know
You might have been doing content promotion for a long time but spreading the word is a different ball game in NFT. You have to first discover the platform that holds your potential customers. Make sure you inform your current followers about your new endeavour. They would be pretty happy to be a part of your journey.
In the beginning, Twitter is a great way to communicate your deals. YouTube is also an excellent place to start with shorts becoming popular among people. Remember, you have to find intelligent and fun ways to market your product. Be bold and different!
NFT is a trend, and trends don't last long. But, if it stands the test of time, it will surely be a great source of income for creators. Early adopters will always be at an advantage over somebody who will wait for things to settle down.
We advise you to consider experiencing the NFT marketplace carefully. At the minimum, it can tell you a lot about where our society is heading. You must know the expected future or lose a lot as a creator.
Anyways, all the best, and keep experimenting.