NFTs started as a way to provide a way to sell digital assets, and now some are trading at prices that seem unfathomable. The current floor price on a Bored Ape is over $300K A few months ago, it was 1/10 of that number.
Currently, supply and demand control the markets, trading based on volatility. But, as the market gets more saturated, this will change. The next phase of NFTs will focus on utility, rewarding its owners with VIP experiences, product discounts, and a community that drives engagement.
So how do brands align? It’s a process that entails building a sustainable concept, community, and ultimately a long-term strategy leveraging tools like Discord and Twitter to build utility around trends. Once that’s in place, brands will fold in the right influencers, further engaging the audience.
In fact, Influencers are starting their own NFTs and hosting exclusive events to bring the hype to real life. For example, actor/influencer Dallas Hart developed his NFT project to give the power back to the creator. He said: “I want to see artists and creatives connect real-world utility to them and escape from the power-hungry people in the industry looking to make money from their work."
Once influencers have brought awareness to their NFT projects through their owned channels (often through product giveaways), the best practice is to keep the community discussions active. Discord has 140M monthly active users (MUAs), according to Backlinko. Here we see excited fans exchanging comments on what will be coming next.
Brands should act quickly to develop relationships with savvy influencers experienced in NFT marketing. Chatrooms (like Discord), provide an invaluable tool to push consumers down ecommerce sales funnels. Forums provide consumers with a chance to share product reviews, speak about long-term viability/quality, and develop an ecosystem of mutual admiration. Aligning with experienced influencers in community marketing will empower customers to spread their passion for projects through word-of-mouth.
As we become more efficient in launching NFTs, a well-thought-out strategy will allow brands to bridge the gap in this new world. They may even build their own NFTs. One thing is guaranteed: NFTs are not going away. It’s time to hop on the train and learn how to elevate your brand.