More and more often we hear about NFTs, but what are they and how do they work? In this article, we will not only explain what NFT means, but we will also give some examples of famous NFTs, see what are the sites to create NFTs and how much it costs to make an NFT.
NFT: what it is and how it works
First of all, let’s give a definition of NFT: a digital content representing real-world objects such as music, collections of various types, games, music. NFT is in fact an acronym for non-fungible token, as they are not fungible, in the sense of not replicable. So much so that NFTs are unique “products”, established as digital tools in the era of cryptocurrencies and blockchain. And they are becoming so important that the step from “simple” digital collectibles to resources for setting up marketing strategies and in particular for advertising is short. Just think of how a company can use them to promote the brand with unique, personalized and collectible NFT logos.
Let’s clarify that when we talk about NFT tokens we mean the set of digital information inserted into a blockchain, just like cryptocurrencies are digital objects. However, unlike virtual currencies which are produced in an indefinite number of copies and immediately interchangeable, NFTs are not.
NFT art what they are
The impact of NFTs in art has been significant. Among the most famous NFTs is Cryptokitties, digital NFT figurines of cats that have become collectibles and have paved the way for NFT collections and crypto art, understood as the digitization or creation of a digital work.
Not only that, as we will see later, the use of NFTs has also found a place in influencer marketing, becoming an opportunity for monetization for influencers through exclusive campaigns.
NFT what are they for and why use them
But what are NFTs used for? How can companies use them to set up a marketing strategy? This is where what is called NFT marketing comes into play. In fact, NFTs can be used to launch a new product or send invitations to virtual events via blockchain and based on an NFT marketing strategy. Not only that, they also allow users to buy or collect digital NFT works that would otherwise not be accessible. Using NFTs therefore means being able to:
- expand the user base beyond the physical good frontier by creating an identikit of the “typical customer” in the world of digital and virtual assets
- differentiate a brand in a truly original, innovative and above all exclusive way with brand awareness campaigns that give greater visibility to the brand and increase sales
- strengthen the bond between user and brand, as NFTs allow specific content to be directed to the community, building loyalty and thus laying the foundations for an authoritative fan base.
NFT in influencer marketing strategy
NFTs are now also used by influencers to promote campaigns or specific content. In fact, real NFT marketing advertising strategies are set up through traditional social channels (from Facebook to LinkedIn) to direct users towards a more modern technology. Not only that, influencer marketing strategy can also be used to build customer loyalty, through targeted communication on possible product relaunches or discounts, as well as on new content or events. In the NFT world, there are also collaborations between brands to increase, each in a different way, their promotional activity with forms of NFT marketing that increase traffic and visibility. That is, the so-called NFT brand is used.
How to buy NFTs
But how do you buy an NFT? You have to use a blockchain. NFTs are for sale on certain platforms. Among the most accessible is Open Sea, on Ethereum, which allows for very fast transactions and fast payments and uploads of NFTs. OpenSea also supports the Polygon and Klatyn blockchains. Recently, Crypto.com has also become popular, originally born as a cryptocurrency exchange, and then extended to the NFT market. In Italy, on the other hand, Stargraph is much more popular, the first marketplace where you can buy the best brand collections by paying with credit cards and even requesting customer care assistance if necessary. However, remember that when you buy an NFT you do not own that asset, but only a certificate (token) that ensures its authenticity and therefore allows whoever has it to exercise all ownership rights.
And how much does an NFT cost? It depends a lot on the platform used to create them. Treasureland, for example, is free.
How to create NFTs
As an alternative to purchasing, it is still possible to create NFTs using NFT-making apps. Which ones? Among the most well-known are Bakeryswap and the aforementioned Treasureland, which have fairly simple and intuitive interfaces, perfect even for those who know little about this world but do not want to rely on an NFT consultant. The fundamental steps to follow to create one are:
- open a decentralized crypto wallet, essential for entering the blockchain ecosystem, useful for keeping track of monetary transactions and above all for making all payments on the blockchain using an encrypted system
- choose the blockchain for the creation of the non-fungible token, evaluating both paid and free platforms
- upload the content to be sold, whether it is an audio file, a drawing, an image or something else, specifying the attributes of the token and how many copies are available
- choose the selling price and for how long to make it available on the market
- advertise the created NFT collection on all channels, starting with your own community (it is obviously assumed that whoever creates NFTs already has an active one)
The process of creating an NFT collection
At Key-One, we follow precise processes in the realization of end-to-end NFT projects, taking care of every aspect of the entire life cycle: from design, to design, to the choice of the best marketplaces with the aim of creating safe, reliable and 100% market-compliant NFTs. Here are the 5 steps of the NFT creation process:
- STRATEGY: preliminary analysis and definition of the project
- NFT DESIGN: we create the design of the NFTs and their Collection
- Marketplace: we choose the best marketplace or platform
- Marketing: we design and launch the marketing project to make the NFTs known
- Maintenance: we take care of technical maintenance and operations management
Contact Key-One’s digital marketing team to establish the strategy to adopt for your NFT business.