Nine things you need to know about NFT

2022-05-29 0 By

Disclaimer: This article is intended to convey more market information and does not constitute any investment advice.This article represents the views of the author and does not represent the official position of Mars Finance.Corporate marketing departments in every country seem to be jumping on the NFT bandwagon.But sadly, most have little impact and make these businesses seem less important.Because from Adidas to Campbell soup to Budweiser, almost every NFT product project follows the same pattern: 1) release an NFT announcement and 2) announce that they’re doing something different because they’re spending more money, or that their idea is slightly different, or that it’s the first innovation in the industry.3. Start a low risk, nothing special, no feeling NFT project.Desperate to get it out there.So why do corporate marketing departments continue to roll out these boring NFT projects?That’s partly because they’re afraid to take risks, but it’s more likely because they don’t understand NFTs thoroughly.As soon as the CEO gave them the task to do NFT, they started working on each project in earnest.Most of the time, they just do it because someone else is doing it.Here are some things companies need to know about NFT to avoid the most common pitfalls.1. The look of the NFT really doesn’t matter.An NFT project should be designed around scarcity, innovation, and community, but the actual NFT used to specify the community is arguably the least important thing in the design, not the primary concern, much less the primary concern.Take some NFT projects for generative art, such as Squiggles.To the untrained eye, there is little or no artistry in NFT, but to those in the loop, it is the NFT project.The artistry of art is not what makes a squiggle valuable.2. A successful NFT project starts with its community, building around its concerns and identity.Successful NFT projects do not start from the top down, but from the bottom up.Communities aren’t about companies; they’re about bringing together ideas from people you’ve never met outside of the NFT community.The Toadz project, for example, started out as the opposite of the Boring Ape Yacht Club (BAYC- see below). Toadz had a more open, inclusive atmosphere and an exploding online community that loved it, so when Toadz launched its first products a few weeks ago, they quickly sold out.Toadz NFTs is far from great art, but their developers have knowledge of the community before starting the project.NFTs are social currencies that are important to a particular community.Having an NFT means valuing and understanding a narrowly defined community that others don’t understand.In the boring Ape Yacht Club’s NFT Photo project, which is based on cartoons of about 10,000 different and rare apes, the images themselves are pretty ugly, but that’s exactly the point.The images are deliberately designed to deter those who do not know or understand.It’s an insider’s club and you have to be in it to get the joke.Being an insider at BAYC meant either being able to buy an NFT early and at an affordable price, or being rich enough to pay hundreds of thousands of dollars for one at current prices.Both have strong social attraction among NFT people, so owning a BAYC ape has become a status symbol.This status has nothing to do with the ape’s artistic merit.4. In this new area, the meta-universe original brand is now more valuable than other existing corporate brands.Overall, RTFKT’s virtual sneakers cost more than existing shoe giants like Nike or Adidas.In fact, giant companies run counter to the whole spirit of crypto.The meta-universe is a new virtual world, but the meta-universe’s brand equity is not as valuable as it is in the real world.The traditional giants refuse to believe this, so they keep making the same mistake, thinking that their highly recognizable brands in the real world will legitimize the whole field.What they don’t realize is that the NFT and the meta-universe are already legal and they are outsiders.This enthusiastic ecosystem is likely to abandon the newcomers to the traditional big companies.This ecosystem is friendly to new ideas and novel projects, but resentful of the excesses of traditional big companies.5. Those very specific NFTS will be rewarded.Companies tend to make NFT projects generic, or too outlandish to feel real.The crypto community is insightful and will take this seriously and flag it as a lame attempt by a company to raise money or seem relevant.Companies should think about what makes their brands truly unique and desirable, and pay attention to what VIP users want from their products.With this in mind, it should be decided whether this theme can be used as a foundation for its NFT community.6. The NFT project needs a sustainable development path.Releasing an NFT project with no future plans will not increase community engagement, and will be seen as a money-spreader or cheap marketing ploy for the company.Experienced NFT buyers will see through this.Good NFT projects evolve, adding layers and nuance to existing projects, and listening to the needs and hopes of the community.7. Not all products should have their own NFT program.In fact, most products should not have NFT.There are a lot of other creative things the project side can do, depending on your understanding of the meta-universe and the NFT ecosystem.It makes no sense to release an NFT product that is outside the scope of NFT, and may be a waste of time in building brand equity.8. Most marketing agencies don’t really understand NFT programs.Companies should ask any institution presenting an NFT project to explain their favorite NFT project and the attributes common to their favorite project.Check their OpenSea Wallet to see how many of their favorite NFTs are available.Ask them what they think of the meta-universe and how they envision building a lasting and valuable NFT project to foster a community that supports their brand.If they are marketing or airdropping still or video images of the company’s products, they are far removed from the purpose of the NFT program.9. Good NFT projects take time.The NFT market is saturated.The next wave of NFT projects will be a mix of forgettable spin-offs and highly innovative and game-changing projects, and what companies want their products to be.