Did you know that the first known NFT, Quantum, was created back in 2014? But it wasn't until the launch of Cryptopunks, a generative pixel art collection in 2017, that people started to see the true potential of NFT technology.
In 2021, NFTs went mainstream. That year, as NFT mania rose, Christie's sold a collection by the digital artist Beeple for US$69 million and dozens of celebrities began sporting Bored Ape profile pictures on social media.
It looks like NFTs are here to stay. They enable verifiable, transparent proof of ownership, and while their most popular use today is for the distribution of digital art, there are endless applications across multiple industries that are yet to be explored. Of the limitless applications possible, we're most excited about the potential of NFTs for web3 games and the overall metaverse.
The NFT market is exploding as the benefits become known
In 2021, NFT trade volumes rose to an incredible US$24.9 billion, up from $95 million in 2020. Some analysts expect the market to be worth over US$210 billion by 2030. The broader applications are starting to be realised thanks to the increased discussions around the metaverse. Big players like Meta, Nike, and Microsoft are all competing to stake their claims.
Last year, Nike acquired RTFKT, a design studio that uses the latest game engine technologies to create one-of-a-kind digital sneakers and other collectables. In 2021, industry rival Adidas released 30,000 Adidas Originals NFTs, which sold out in minutes.
Gaming is another huge market where people can play-to-earn (P2E) and deck out their avatars in unique NFT-backed clothes. As web3 adoption increases, the blend of games, marketing, and creativity will benefit, and it will all be based on the blockchain.
How can you get involved in the NFT sector?
Getting involved can seem a bit daunting to those who don't know the ins and outs of the industry. Fortunately, as with computing and the internet, companies are appearing to help the inexperienced navigate the scene.
A great example is NFT Tech, a Canadian-based company that develops and invests in NFT technology and protocols. Founded in 2021 by Wayne Lloyd and Jason Coles, the company serves as a gateway to web3 for tier 1 brands. The firm sees the interactability of the metaverse as bringing brands closer to their fanbase than ever before, while also generating multiple new revenue streams. NFT tech is listed on the NEO exchange under the ticker NFT.
NFT Tech's Co-Founder and Executive Chairman Wayne Lloyd explains, "People are waking up to the potential of NFTs and the role they will play in web3. Non-fungible tokens and the metaverse are the future, but they can seem daunting to outsiders. We know and understand these technologies and are fully aware of the potential of NFTs, so we set out to make investing and getting involved easier."
"Marketplaces and collections are getting a lot of attention," says Jason Coles, Co-Founder at NFT Tech. "But NFTs have much more potential than that. We're developing assets, real estate, and IP in the metaverse. We are also building and generating revenue from P2E and M2E games and provide research and insights into what is happening. We bridge the gap between capital markets and the web3 space."
The potential of NFTs is finally starting to be recognized
One of the advantages of NFTs is that ownership and consequent transactions are permanently recorded. So, for example, if a blue-chip company launches a product or creates an item, they can prove ownership and follow what happens to it.
"Increasing numbers of companies and tier 1 corporations are finally looking beyond the 10,000 JPEG collections and want to get involved. We help businesses launch projects optimally while getting a percentage of resale royalties and launch revenue. This is a more inclusive and fair approach made possible by the blockchain. There are no disputes over ownership, creative rights issues, or concerns over potential future fakes," Lloyd says. "We recently acquired Adam De Cata's agency Run It Wild, which has launched 8+ tier one brands into the web3 space," he adds.
Gaming is another significant industry, and NFT Tech is heavily involved. To develop the sector and its role, the company acquired Sherwa, which has a huge player base and solid development team.
Coles says, "There are growing numbers of gamers that love P2E games - both playing them and earning from them. So, we're building a product that shows gamers which game will make them the most money on a given day. The goal is to earn by bringing players to our partners' games. We're also creating a gaming exchange, the first of its kind, that allows players to trade items between games."
Some might still see NFTs as JPEGs, but that is rapidly changing. Forward-looking companies, creators, and investors are waking up to the enormous advantages brought by NFTs, the metaverse, and blockchain technology.
