NFTs (non-fungible tokens) have been increasing in popularity over the last couple of years. They work in a similar way to cryptocurrency in that transactions are recorded on blockchains.
The unique codes that turn digital media into NFTs don’t have any real-world value. However, businesses can use NFTs within their marketing strategies to boost brand awareness and raise funds. Throughout this article, we’ll take a look at five benefits NFTs hold for businesses.
Managing Supply Chains
NFT technology is helping businesses keep track of their supply chains. When customers buy products, the unique code embedded can display the entire journey, which will include everything from the owner to product viability. Using NFTs to store supply chain information eliminates the need for stacks of paper, which can easily be lost or falsified.
Steering Brand Awareness
On the back of the NFT trend, many people are excited to own unique digital art from their favourite brands. Therefore, if businesses release lines of NFTs, it may help build a buzz about their brand and attract new customers.
Another great way to integrate NFTs into a business is by creating “digital tickets”, with ownership being tracked. For example, a nightclub owner can host a private event for NFT holders, and ownership of the digital ticket (NFT) can never be disputed. As well as increasing interest in the brand, the NFT has a real-world value attached to it. To begin selling NFTs, you will need to find a quality NFT marketplace.
Building a Solid Community
Customers love to feel valued by businesses, and NFTs are a great way for businesses to send the right message. For example, if your business is on Discord, NFTs can allow access to exclusive channels and content. Further, free giveaways can be attached to NFT purchases, which makes a sale more likely. If you want to see a fantastic NFT system with an active community, take a look at Avenged Sevenfold’s Deathbats Club NFTs.
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Small businesses need financial support to help them take off. Typically, these investments are secured through banks and serious investors. However, by creating and selling NFTs, businesses can raise funds in a secure and much faster way. If businesses wish to reach serious investors, each NFT needs to come with shares in the business, and the artwork needs to be enticing.
Supporting Good Causes
Businesses with good moral values that invest in great causes are more popular. Therefore, NFT sales can be used as a means of giving back. For example, a line of NFTs can be sold with a promise that for each sale, the business will plant a specific number of trees. There are countless creative ways to combine NFTs and good causes, you just need to think transparently and out of the box.
Blockchain tech is slowly making its way into many areas of business, and NFTs are along for the ride. Thanks to the proof-of-ownership nature of NFTs, they can be used to encourage a healthy community, increase brand awareness, raise money, and much more.