NFTs: analysis of the industry & applications in brands’ marketing strategy

Abstract

NFTs (non-fungible tokens) are digital assets that prove ownership for objects like art, collectibles, video clips, music, designs, and more. In simpler terms, they are known as modern-day collectibles. NFTs are recorded on a blockchain using smart contracts. While there's yet to be made a conclusion on the long-term value of NFTs, they exploded into mainstream consciousness in 2021. Traded on marketplaces built on cryptocurrency, NFTs sales exceeded $2 Bn in the first 4 months of 2021. For instance, Twitter CEO Jack Dorsey auctions an NFT of his first tweet for $2.9 Mn, 20-sec Lebron James’ dunk video sells for $208,000. Even the big brands like Pizza Hut, Nike, Gucci, Taco Bell, Microsoft, have joined the bandwagon. From promotional campaigns to having an additional income stream, brands are exploring the world of NFTs. So how exactly will the landscape of NFTs shape up in the years to come?