NFT tickets show how the NFT industry is developing

NFTs are in a transition phase.

Major media and entertainment companies have been signaling their intention to enter the NFT market for over a year now, with this intrusion set to change the nature of how most consumers perceive NFTs.

Currently, the common thought among many is that NFTs are expensive images or, even worse, a scam or pyramid scheme, as exemplified by comments recently made by Bill Gates.

This perception has not been helped by the impact of so-called “cryptocurrencies”: The recent decline in the value of cryptocurrencies has seen a corresponding decline in the value of NFT sales, which makes sense given that many markets were linked to that value. An exception to the rule is the trading card giant Panini, which only allows fiat currency payments and has not seen a decline in USD sales, per CryptoSlam.

Although it is accurate to say that the NFT market for collectibles is declining, when looking at the total volume of transactions, the decline is subdued. June saw a 11% drop in total transactions from May, a significantly lower drop than 72% in sales value.

All of this will have an impact on how the public views NFTs, and opens up the possibilities that technology allows. As VIP +’s “Web3 Demystified” special report notes, an NFT is conceptually a blockchain book that describes ownership. How this is utilized depends on the individual, and it is now non-image NFTs are increasing.

Event tickets are a good example of NFTs being used for functional purposes while benefiting an existing concept. As is the case with almost every facet of NFTs, the existing ticketing industry – led by Live Nation Entertainment’s Ticketmaster – is looking to expand into the new area, while NFT upstarts like YellowHeart are trying to disrupt old markets, build from the reason for.

This concept of old versus new ticket customers sees different approaches taken in the market. Ticketmaster and Live Nation are so far focused on functionality after the event, and offer memory ticket pieces for participants at sporting events, concerts and festivals. While some of the festival NFTs offered real opportunities, such as access to a VIP lounge at the New York Governors Ball, none of these NFTs act as an actual ticket – ie, give owners access to the event itself.

What YellowHeart offers is a completely different experience. The ticket is an NFT and a direct entrance to concerts and events, in addition to being a digital stump. The nature of what an NFT essentially is – an overview of ownership stored on the blockchain – means that NFT tickets are able to cut out bad actors and eliminate counterfeit tickets to events, as there can only be one copy of an NFT.

Using NFTs for ticket sales also means that scalpers, long a path for event attendees, will see their margins shrink on two levels. The first is the implementation of smart contract technology in tickets, which means that a cut, probably around 10%, of a possible resale will go to the artist and / or the venue. The second is the ability to limit resale amounts within the NFT ticket marketplace, and cut scalper’s margins.

NFT tickets also promise extra benefits for owners and event organizers. Live Nation President Michael Rapino noted in the company’s earnings announcement for the first quarter of 2022 that NFT ticket stubs can help create an ongoing relationship with the owner (in addition to providing more sales opportunities).

VIP + reached out to several entertainment brands active in the NFT ticket area, which reflected the feelings of the community. MGM Resorts International’s SVP for Digital Product & Design Excellence, Andrew Machado, told VIP + that NFTs will help provide engaging experiences to guests, both before and after events. Tao Group Hospitality VP of Marketing Justin Levy added that NFT tickets allow the event experience to live on just the night before the event, thus unlocking a new opportunity for brand awareness.

With blockchain technology that makes it clear who the end users and participants of the event are, NFT tickets also provide the opportunity for additional ongoing benefits, such as benefits and rewards for frequent visitors to arenas or sports games. It provides an alternative format for customer engagement via special offers or food and beverage credits, which have previously only been sent via e-mail. NFT tickets can also provide access to exclusive content from events, which ensures participants’ engagement beyond the event.

In short, NFT tickets promise to provide actual utility and convenience to the technology. As the concept becomes more widespread, it will help replace the consumer idea of ​​what an NFT is from expensive, potentially scam, digital artwork to technology that can be used positively on aspects of their lives. We are four years away from the World Cup in North America; Expect such events to include this ticket sale and help cement the new era of NFTs in public consciousness.