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NFTs Boom In 2022, Fill A Void For Brands Looking To Connect With Consumers

Non-fungible tokens -- digitally reproducible photos, videos, and audio -- will fill a void in 2022 for brands looking to connect with loyal consumers. 

Artists, celebrities, and musicians like Ozzy Osbourne and companies like Campbell Soup, PepsiCo and Nike have created non-fungible tokens.

Sales of NFTs have already totaled about $14.1 billion during the past year, according to nonfungible.com -- up from only $65 million the year before.

Consumer behavior will support the rise in interest. Google searches rose for NFTs in 2021, but marketers can expect major spikes in 2022.

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Searches hit record levels this year, with traffic surpassing search terms related to many crypto assets ranked among the top ten.

The spike in interest in NFTs surpassed keywords that have dominated crypto-related search traffic, like “DeFi,” “Ethereum” and even “blockchain.”

MusicFX, a music fan club on a NFT platform, provides a place where fans can buy a piece of digital history.

The site is powered by CurrencyWorks, a financial technology and blockchain company working in partnership with Crown & Ace, a music manager and events company.

Country singer and songwriter Parker McCollum will release his 2022 Fan Club NFT on MusicFX. Parker is the singer-songwriter behind the platinum-selling single ‘Pretty Heart,’ and has just released his latest music video, ‘Falling Apart’ from his hit debut album "Gold Chain Cowboy."

Media.Monks, a content agency created under Martin Sorrell's S4 Capital, this year began working for major fashion brands to explore NFTs.

“It’s the market opportunity to own a unique digital asset like art,” said Joe Olsen, Media.Monks chief growth officer, during an interview in October.

While the majority of NFT transactions have been retail purchases less than $10,000, there is still a range of collectors who buy between $10,000 and $100,000 with institutional purchases of more than $100,000, according to a study by Chainalysis.

The study estimates that between January and October of 2021, consumers sent at least $26.9 billion worth of cryptocurrency to ERC-721 and ERC-1155 contracts, the two types of Ethereum smart contracts associated with NFT marketplaces and collections.

Key to this trend is the ability “to move tokens across different blockchains.

For example, in the sports market, the NBA and NFL have partnered with Dapper Labs to mint NFTs on the Flow blockchain, while the MLB's platform Candy uses Ethereum,” according to Joseph Genest, a contributor at Highsnobiety, who believes that 2022 will become the year consumers begin to understand why NFT are not just digital Beanie Babies. 

2 comments about "NFTs Boom In 2022, Fill A Void For Brands Looking To Connect With Consumers".
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  1. Deborah Carr from AdventureSports!, December 31, 2021 at 9:31 a.m.

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  2. Tony Reynolds from A KickIn Crowd, January 3, 2022 at 7:32 p.m.

    Great article Laurie. I'm excited for the NFT market in whole, but especially for the music market.

    NFT's will democratisize the music industry for artists.

    Mashable recently reported that the three major record labels make $19 million per day and Rolling Stone Magazine reported that in 2020 record label profits soared with Universal and Sony posting record profits.(granted some cost cutting was attributed to that outsized profit) But the artists were not seeing that money via unit sales. They have to rely on concerts and music publishing to generate income.

    Meanwhile, an artist like Cardi B is online saying she sold 60,000 units in a week. Remember the time when major artists might sell 1,000,000 units of an album in a week? That benefited the label and the artist.

    Those days ended when streaming took over (controlled by the 3 major labels) and 1,000,000 units now equals approximately $4,000!! Yes a whopping $4k for the artist, but labels are still making billions from it.

    Yahoo reported that Torey Lanez sold 1 million NFT albums in 40 minutes.

    NFT's provide value to the new owner, just like a physical album because it can be resold by the owner. It's an instant collectible. The art and music are two collectible categories put together that will allow fans to enjoy a greater connection, experience with the artist.

    AND the record labels can still make a profit like the olden days of the 80's and 90's, but just not keep all of it to themself. The artists AND the labels can both eat from the same table.

    My own Sync Tone music NFT launches soon, and I'm really excited for the future of music consumption for the fans and the artists...and yes the labels will benefit too.

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