A Closer Look at Utility NFTs (with Examples)
Closing 2021 at $23 billion in trading volume, from the meagre $100 million in 2020, the NFT market has reached mainstream adoption at a rather staggering rate. This year, NFTs aren’t showing any signs of slowing down either. However, with each day, hundreds of thousands of NFTs are being created, and simply creating or just owning an NFT is no longer that interesting for most people.
With the NFT market getting saturated, creators have to reimagine a way that gives users more reasons to collect NFTs. Today, non-fungible token collectors need not only hold an NFT but get an array of benefits along with it. The utility behind NFTs is proving to be the real key to the leading projects’ success.
From exclusive club memberships to access to parties and new collections, the passive benefits of holding utility NFTs are one of the new hot trends you should jump on earlier this year. Here is a closer look at utility NFTs with examples.
The Definition and Categories of Utility NFTs
Unlike standard collectibles, utility NFTs have various valuations, depending on perks, access, and opportunities they present to the token holder. In other words, utility NFTs have a clearly projected intrinsic value on top of their scarcity. Although we are still at the early stages of utility NFTs, this new trend gives a value accrual for NFT technology and limitless opportunities for visionary enthusiasts.
Currently, the industry classifies utility NFTs into various broad categories, including:
- Social NFTs
- Community NFTs
- In-Game NFTs
- Gambling NFTs
- Fantasy Sports NFTs
Examples of Utility NFTs
Users have a plethora of options when it comes to utility NFTs. Prevalent examples that are already disrupting the industry include:
1. Sloties for the Gambling Industry
Blockchain adoption in the gambling industry is slow as the sector primarily runs on traditional technologies. Nevertheless, some new projects, such as Sloties are gradually incorporating blockchain into their platforms. Sloties encompass over 10,000 unique NFTs generated on the ETH block with the aim of offering more utility in the gambling sector.
Users can play slot machines and earn Sloties instead of traditional cash rewards. In return, gamblers get a stake in the in-house casino through their own Sloties. With this, Sloties brings a transparent DeFi platform for casino players, where the community can invest their NFT assets and get rewards. For instance, collectors can use their Sloties NFTs to play slot games and earn a reward every time they spin the machine.
Besides generating a passive income stream, this incentive-centric NFT model promotes holding culture, while also driving demand and additional value for the tokens.
2. The Bored Ape Yacht Club (BAYC)
The Bored Ape Yacht Club is arguably one of the most famous NFTs alongside CryptoPunks. However, unlike CryptoPunks, holding BYAC NFTs comes with an array of perks, among them exclusive access to a members-only space, such as The Bathroom that encompasses a collaborative artistic platform for drawing a single pixel on canvas every 15 minutes.
Other types of access that a collector can gain with a BYAC NFT include:
- A merchandise store exclusive for members
- Mutant apes yacht club (MAYC)
- Bored ape kennel club (BAKC)
- Mobile game competition: Apes Vs. Mutants
- Mansion party access
In the MAYC, creators drop serum to your NFT wallet. You can then inject the serum into your ape and create a mutant version. The BAKC gives each ape a dog, airdropped to holders by the creators, while the mobile game competition allows mutant ape and ape NFT collectors to play against each other.
3. VeeFriends
VeeFriends NFT project, pioneered by Gary Vaynerchuk in May 2021, provides a utility blueprint on how to get NFT projects right the first time. Unlike traditional NFTs, VeeFriends’ intrinsic value is nothing to get excited about. Instead, the possibilities presented by the token are what hold more value. VeeFriends comprises three types of NFTs, including 9,400 pieces of Admission NFTs, 555 pieces of Gift Goat NFTs, and 300 pieces of Access NFTs.
Owning either of the NFTs will give you three-year access to VeeCon, the developer’s conference for innovation, marketing, creativity, entrepreneurship, and community fun. This gives collectors a rare networking opportunity to interact with NFT enthusiasts globally. On top of access to VeeCon, Gift Goat NFTs give holders up to six mystery gifts mailed to their physical addresses every year. Even better, Access NFTs give you a one-on-one with Gary, either virtually or in person.
4. Meta Optimist
Clinique created three editions of Meta Optimist after realizing the potential of NFT artworks beyond holding them as collectibles. An NFT piece among the first collection gives collectors access to free products for nearly 10 years. Moreover, a holder of this piece also has access to Almost Lipstick Black Honey, a 50-year product that’s typically out of stock every time.
As collectors are waiting for the release of other Meta Optimist collections, the first one pretty much sums up the potential of this project in the near future. According to Carolyn Dawkins, an executive at Clinique Global Online. Meta Optimist is on a path to “modernize loyalty” with utility NFTs.
5. Ghetto Sharkhood
Ghetto Sharkhood is a rising NFT that brings amazing real-world incentives to the underlying users. Just like BAYC, the Ghetto Sharkhood also features a collection of up to 10,000 sharks, which users started minting on the 12th of December, 2021. Ghetto Sharkhood has various features that make it a worthy project to look at compared to other utility NFTs, including:
- Ghetto Shark impact fund that supports environmental courses
- Ghetto Shark coin for collectors to stake and spend
- Ghetto Sharkade for playing and hosting NFT games
- Ghetto Shark fund for community initiatives
However, the initiative that stands out and brings a more real-world utility is the Ghetto Shark impact fund. Ghetto Sharkade features play-to-earn games whose proceeds fund community agricultural programs in rural areas. Besides empowering farmers to cultivate crops more sustainably, the initiative also covers children’s education and healthcare in developing areas. Moreover, the program also participates in animal conservation and beach cleanups.
SpaceSeven is the go-to marketplace for utility NFTs
On SpaceSeven, we are seeing a growing number of creators and developers who are taking advantage of utility NFTs to support and grow their audiences into strong communities. Whether you want to implement membership NFTs or redeemable rewards, SpaceSeven is in full support of utility NFTs. Our experts are also available to offer insights and advice if needed. Future plans include special access to exclusive events, or digital forums and early access to special offers and discounts.
Over to you
NFTs marry both exchange and experiential value by seamlessly combining collectibles with utility. A simple digital artwork opens a door to endless opportunities. From these utility NFT projects, you can tell that the versatility of this new technology is something that will soon be part and parcel of our daily life. Moreover, developers can customize utility NFTs for any purpose. Sign up on SpaceSeven to mint or collect your first NFT and explore the utilities tagged alongside holding it.
