NFT’s — The Creative Way to Fundraise and Gain Raving Fans
ABBA, the 1970s pop phenomenon sang about ‘Money, Money, Money and a rich man’s world.’ The definition of money and riches has expanded over time. Fast forward to the 2020s and we’re familiar with the phrase, ‘riches are in the niches.’ A Non Fungible Token is a technical niche in the world of Web 3.0. Web 3.0, is the latest iteration of the Internet. Essentially, it’s a global network that is fuelled by intelligent exchanges between people, software and devices. And it doesn’t rely on third party intermediaries to validate transactions, In fact, Blockchain technology, which is a key component, introduces trust to relationships, where none existed before.
Blockchains are data structures that offer different ways to store data on a computer. This is done via a digital ledger that is shared with independent users in a network. As a result, they create a secure and irrefutable record of what has taken place. This includes documenting identity, ownership of assets, contractual agreements and anything else of value.
Non Fungible Tokens (NFTs) expand the use and definition of Blockchains that were tied initially to Bitcoin and cryptocurrencies. NFTs introduce consumer and commercial aspects that can generate considerable wealth, ownership and community. An example of this is Mike Winkelman, otherwise known as Beeple. He’s a digital artist and graphic designer. In 2021, he sold his digital art collection, ‘Everydays: The First 5000 Days, for $69 million. His JPEG artwork is a digital asset that was documented as a NFT on the Ethereum Blockchain.
Trading of such assets are governed by a Smart Contract, which is just a digital representation of a physical contract. It’s a tiny computer programme that’s stored inside the Blockchain. Once it has been created it becomes virtually impossible to tamper with it. Beyond artwork, NFTs and Smart Contracts can represent a whole range of things. For instance, birth, marriage and death certificates. Or deeds to a house, sporting tickets like the Olympics and Wimbledon. Through to gaining entrance to your favourite concerts and access to musicians. The same applies to business events and conferences.
Last weekend, the irrepressible business leader, Gary Vaynerchuk, held the very first VeeCon Conference. One could only gain entrance if they’d previously bought a Vee Friend, NFT character. The NFT became the ticket. Gary developed unique intellectual property by designing a set of characters that reflect attributes that he cares about. For example, empathy, kindness and friendship. The preselling of these creative assets, months in advance, has funded this annual Conference, for 2022, 2023 and 2024.
Gary combined the ideas of collectible art and community experiences, via a conference. In particular, he created different tiers of access to him. Examples include; coaching sessions, group dinners, VIP experiences and so much more. Taken together, this is an excellent example of how to build equity. For instance, it expands brand awareness, creates raving brand advocates, introduces transferable ownership, builds legacy and income generation. This last item has several beneficiaries in the form of the:
- NFT Creator, the initial NFT Ticket Holder and anyone else who the original ticket holder has sold the ticket onto. This can occur if the original buyer attends the first conference and decides to resell their ticket onto someone else, at a profit.
The beauty of this is that anyone in the chain of creator, seller and buyer, makes money. Each time the NFT is sold on the creator receives a royalty payment, into perpetuity. Consequently, the power of NFTs and Smart Contracts turns original art and collectibles from memorabilia to utility to an asset.
All types of creators, entrepreneurs and organisations are experimenting with this new revenue stream. Another example is the CogX Festival that focuses on Artificial Intelligence, Blockchain, the Metaverse and surrounding technologies. This year the organisers are offering a CogX Patron Programme. The benefits include collectible art, participative stakeholder relationships, a lifetime pass and more.
As summer approaches, now would be a great time for you evaluate your endeavours. Is there a way for you to revitalise your business model that incorporates NFTs and Smart Contracts? Think about all the lazy assets you could be sitting on that need to be brought to life. They really could create meaningful value.
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