We are witnessing the rapid rise of a new phenomenon in the digital world: non-fungible tokens, or NFTs. The market is expanding in everything from culture to fashion, luxury, cosmetics, food, and real estate. Consumers are increasingly investing in blockchain-related technology. These digital tokens are upending codes and forcing major corporations to rethink their marketing and communication methods.
Definition of NFT
“Non-fungible tokens” is an abbreviation that stands for “non-fungible tokens.” Based on blockchain technology, they are cryptographic and virtual elements. What makes NFTs unique? They each have their own identification code. They’re digital property titles that can’t be changed, so buyers can trust them. In contrast to cyber currencies, they cannot be traded or swapped.
The emergence of NFTs
Non-fungible tokens, which originated in the world of cryptocurrencies and virtual gaming, were initially favored by a small group of people: geeks. They were used to getting virtual game cards for games like NBA Top Shot. The NFT then expanded thanks to the game Cryptokitties, which allows players to raise unique virtual kittens.
This new technology, which was greatly influenced by the metaverse concept, carved out new markets, most notably in digital art, but also in fashion, luxury, cuisine, and real estate. The NFT market was worth 2.7 billion dollars at the start of 2021 and had grown to 10.7 billion dollars by the third quarter, an exponential rise that prompted brands to invest in this technology and include NFTs into their communication strategies and marketing efforts.
A technology that is a hit in the cultural sector
Crypto-art has sprung up as a result of these digital tokens’ rapid adoption in the art world. A new type of digital art based on blockchain technology that includes films, photos, music, and GIFs.
Many artists, such as Beeple, are selling their original digital creations in whole or in part. The works have a unique serial number and are safeguarded against reproduction thanks to NFT technology. Since artistic works were previously fungible, this represents a tiny revolution. As a result, buyers and collectors may rest assured that they are owning a one-of-a-kind, unchangeable work of art.
On the art market, it is a true revolution that is shattering the industry’s norms. NFTs make it more accessible to a wider audience and attract new customers who might not otherwise invest in a conventional art. This new form of art is particularly popular among millennials.
The NFT trend is also enticing in the cinema. The Vuele network used non-fungible tokens to distribute the first fiction film, starring Anthony Hopkins. Quentin Tarantino will soon reveal seven rare moments from his acclaimed film Pulp Fiction.
NFTs take on the Food Industry
After conquering the cultural realm, fast food behemoths are now being captivated by this technology. Taco Bell, a fast-food franchise, hopped on the bandwagon in March 2021, releasing collectible tokens called Taco Art that depicted creative depictions of the chain’s goods.
Burger King swiftly caught up and began its own “Keep it Real Meals” ad campaign. A series of digital collectibles that may be earned through a game, with three NFTs providing access to special prizes.
Fashion and luxury are diving into digital fashion
The major luxury fashion houses are shattering the rules and recreating fashion in the digital age. Big names have invested in NFT in quest of creativity and ongoing innovation. Non-fungible tokens in fashion and luxury can take many forms, including digital doubles, metaverse rare digital assets, and even digital collections.
NFTs give the fashion and luxury industries a way to prevent counterfeits while still providing great products.