There is no doubt about it: non-fungible tokens (NFTs) are one of the most enthralling developments in the investment world. With NFT art pieces being auctioned for as high as $69 million, it’s no surprise that 29% of American adults are interested in learning more about these exciting opportunities.
So, how did simple NFT pixel art become worth millions and disrupt the investment world as we know it? Keep reading to learn what Orovoy’s handmade necklace experts have to say.
What is an NFT?
In practical terms, an NFT is a unit of data held within a digital leger (also known as a blockchain). As such, it can be freely traded and sold between parties, usually in the form of a digital file.
Some common examples of NFTs include:
- Videos
- Audio
- Art
- Photographs
- GIFs
Once they’ve purchased an NFT, buyers enjoy exclusive ownership of the digital asset & the contract underneath it. Since the agreement is made solely between the seller and buyer (rather than through the stock market or a bank), they are free to re-sell it however — and whenever — they see fit.
Why Are NFTs Important?
The NFT market offers a few important advantages over traditional contracts & investment platforms, including:
- Freedom: NFTs allow anyone to make investments without worrying about a “middle-man” overseeing their actions.
- Simplicity: In the past, only those with prestige and experience were allowed to enter the centralized investment scene. In comparison, NFT purchases require no approval from a bank or the stock exchange.
- Security: Blockchain technology has strong security as it is decentralized, which means that the contract underneath a NFT is permanent and secure.
Essentially, NFTs allow all individuals engage in secure contracts with limited centralized controls and restrictions.
How Can a Start-up Leverage NFTs?
Since NFTs are universal, any start-up can utilize them to receive investments. Some common methods used to drive revenue include:
- Providing Value: Avoid treating NFTs like a cash grab. Instead, focus on providing value to your investors, whether it be through access to information, physical items, exclusive data, or something else.
- Inviting Investments: Whether you charge a flat rate or a recurring fee, selling NFTs can be an effective way to build long-term partnerships. So, don’t be afraid to advertise your business to investors in places you might not initially think of, such as social media.
- Treat it like a brand stock: Once you secure an investment via NFTs, make sure you build brand values with the investment. As your brand value goes up, your NFTs will soar in price which will invite more investments.
Already, multiple start-ups are using this advice to propel their growth. For example, Orovoy’s upcoming Kickstarter project in March will allow buyers to support the company by purchasing Orovoy NFTs. In exchange, they will receive an exclusive NFT, as well as an 18k vermeil natural gemstone handmade necklace and aspiration test.
How Can Average Individuals Leverage NFTs?
Imagine if everyone had the opportunity to invest in Amazon or Facebook before they became multi-national corporations.
Well, that is no longer a one-in-a-million chance, or you need exclusive connections, as NFTs make this possibility more accessible than ever. To leverage NFTs for themselves, the average individual can follow these steps:
- Research the Market: Innovative ideas and business are launching every day. By keeping an eye on emerging industries, investors can easily purchase a start-up’s NFT in its early stages.
- Avoid Cash Grabs: It’s important to be wary of the many “cash grab” & “Rug pull” NFT projects being offered. Investors can keep their information safe by solely purchasing NFTs from trusted markets like OpenSource or ensuring their seller is verified.
Ultimately, buying NFTs is one of the easiest ways to support start-ups and make a profitable investment in the 21st century.
