An Alternative Outlet for Community-Building

NFTs serve multiple different purposes. They differ from person to person, depending on their position - whether they are an NFT seller, or (potential) buyer. 

NFTs act as a tool and catalyst for exposure for sellers. They get to have easy access to a larger potential audience. This is because when they get on the NFT marketplace(s), it is a digital form as compared to physical forms. There are also no discrimination and little restriction on who can purchase NFTs. Anyone is able to access and purchase them. 

Furthermore, NFTs are incredibly convenient to put up, store and distribute in contrast to their physical counterparts. Anyone who has a device to use the internet and is able to do so, will be able to access NFTs. This increases its visibility. When visibility increases, the speculative value of the NFT increases.  

That is in addition to the ease of trading, making NFTs very fluid. When they are constantly circulated through a cycle of buying and selling, it creates speculative value in how high their demand is. Hence, this further drives up prices of NFTs, benefitting sellers. 

These NFTs facilitate community building. Sellers can create and cultivate a community around their NFTs, and interest can be created around your NFTs. Interested parties join platforms such as Discord or Telegram, to discuss and create conversations around it. 

There are many types of communities with different unique personalities surrounding NFTs. Some have their own slangs, inside jokes and traditions. An example of a bustling NFT community is MekaVerse, which amassed over 100 thousand people joining their discord just within 2 days. 

Creators can earn royalties from the NFTs that they have minted. In the Ethereum blockchain, automatic royalty is paid out to the content creators. A percentage is calculated and transferred to them once the NFT they created is sold. This royalty system is automated and therefore, very efficient.  

Beyond Imagery 

For NFTs that are attached to physical items, they are usually limited in their supply. Taking the first all-NFT wine brand, Hello Fam for example, NFT owners can choose to redeem (or “burn”) their wine. One NFT is equivalent to 6 bottles of their NFT-exclusive wines. When this happens, supply falls. Eventually, prices are driven up due to the scarcity observed.