NFT benefits: NFTs provide new financial opportunities – Who invests and why?
Antara Movie NFT is the first of its kind to allow a buyer to digitally share the rights of the Hollywood film. NFT makes it possible for holders to share in the box office and streaming revenues.
NFTs are programmable according to user requirements. They are special assets that cannot be replaced with any other type of token as a result. Such NFTs may be designed to reflect and follow specific conditions or laws established by the creator using blockchain-enabled technology.
NFTs offer enormous opportunities for business leaders as they allow companies to create new business models, thereby increasing the value of their current goods and services and expanding untapped potential in different markets. This new technology offers a wide range of opportunities for trading and investing in a new class of digital assets, as well as an alternative way of financing initiatives.
For example, in recent times, the music band Kings of Leon released the NFT, which represented the key to digital files, along with a new album that was released. These NFTs contain data coding that gives buyers access to front row seats to the upcoming Kings of Leon performance.
Many big brands invest in NFTs, which expands the spectrum for users to invest and creates new opportunities in a world where technology is constantly evolving and changing.
Here are some reasons and brands investing in NFTs:
When it comes to safeguarding value, NFTs provide the best way possible.
NFTs are basically designed for online trading, thus including them to be used in the same way as real currency. The problem with cryptocurrency is that its value is constantly changing and not constant. NFTs, meanwhile, are linked to a real-world object that has some actual value.
NFTs provide unique ownership of digital assets.
NFTs are special assets that cannot be replaced by any other type. Digital objects are very common in video games. The problem, however, is that they are not exclusive to any title. These are often tied to the platform they were designed for, so if someone wants to buy them, they have to hire a broker to connect them to the provider. This problem is solved by NFTs, which allow users to freely trade their preferred items across many games, as well as buy and sell them.
NFTs give people more freedom to customize their digital assets.
One of the advantages of NFTs is that it allows users to customize both current and new assets. It all depends on the smart contracts used to construct NFTs. This feature of the technology enables total control over each token, allowing users to change everything from the color scheme to the logo.
Some of the top brands in the world investing in NFTs right now are:
Nike: The sportswear giant recorded a whopping $90.59 million in royalties and over $183.69 million in total NFT sales. Interestingly, Nike is probably among the first businesses to report a secondary transaction volume of $1.3 billion.
Budweiser: The beer giant introduced its first NFT in November 2021. There are approximately 1,936 different, independent digital representations of beer cans in the Budweiser NFT collection, commonly known as the Heritage Collection. Total NFT revenue for Budweiser was reportedly $5.88 million.
Not only big brands, ordinary people have also found use cases and opportunities to generate revenue. A closer look at how you can create financial income streams through NFTs reveals the following to us:
- Users can invest in games to earn money
- Invest early in new NFTs
- Investment in passive crypto mining protocols
- Flip NFTs
- NFT trading
- Generation of royalties through trading of NFTs
With the NFT craze showing no sign of abating, investors can expect big profits, making it a viable alternative to existing asset classes. With benefits comes the problems of people being scammed out of their money through issues like Washtrading, Phishing and more. Users must be careful and do their due diligence before investing in said brands.
Vijay Pravin Maharajan is the CEO and co-founder of BitsCrunch
