I have been building Art Mob, a company focused on creating real and long-term value for artists, for the past two years. At this time, the market is still volatile and we're guarding against the bubble being popped and expected that the market will back off once the conclusion of the NFT period is reached.
NFTs present a valuable opportunity for artists, so I wanted to provide a list of ways to contribute to the success of an NFT and contribute back to the community.
Celebrity - It's amazing how much value can be added to an NFT by having work created by renowned artists. Many people will purchase your art for this reason. A celebrity's online activity on social media networks or elsewhere, whether or not it is producing results, also plays a part in their digital object's visibility.
Community - Much like any other type of asset, NFT's will have only value if there is some form of community and trust in the currency or token they represent. Perhaps you might be able to convince some of your family and friends to purchase your NFT as a support for you, but this is not going to have any long term effect on your business.
Continuity - Is the artist and team doing a one time NFT sale to raise some money? This is an unlikely scenario for raising money without a corresponding increase in art. It’s important for the people behind this news to be long-term thinkers, considering a series of blockchain-based digital assets that are likely to succeed in the long run. The earlier the introduction of non-fungible tokens, the more that can be done by their communities and the more that is accomplished.
Passion - Does the person behind the NFT actually believe that these NFTs are possible, or is this token just being used as a means to generate profit? Can they understand the technology and make the most out of it to create unique, meaningful artwork for the world of blockchain? There is nothing more essential to the continued value of your Token than a fanatical belief in the value that it represents for the community.
Permeance - What technology is the content served by the NFT created with, and where is the data corresponding to that content stored? How likely is it that all of this technology and data will still be around in coming decades? That's a question that will likely remain unanswered for a long time. To be considered valuable, any NFT requires a complete and valid response from both the extent to which it stores data, as well as the URL that it displays. Art Mob and Lux are working on long-term storage solutions that solve the problem.
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Powers - While some media token types allow the owner to do something with it, like create a magic item in a game, other types are simply used as a means of exchange or even to simply commemorate achievements. There are many ways that NFTs can be used as a type of utility token in a greater system including unlocking new features, participating in ongoing rewards, or participating in staking programmes.
Quality - Are your NFT the best quality version of the art? If so, then it may be worth more. If it’s not, then the value of the NFT may decrease. Consider the different tiers of scarcity and the different qualities, with the more rare and valuable NFTs having the highest quality. Although well-suited to the current trend in the art world, the limited number of original images, the larger number of serigraphs, and how they’re priced all match together.
Rights - With what rights are digital ownership and broadcast associated with ownership of the NFT? If you've kept those rights to yourself, you should have an idea.
Scarcity Tiers - In order to create some value within NFT ecos, creating tiers with a proven past track record of giving your token better quality, better powers, and even better utility is a good strategy to consider. The classic example of how a system of gamification that creates psychological value for the human mind is through an award system. For example, if you’ve climbed to the top of a social ladder. You might find that five weapons in a similar tier have varying attack values. To make it more attractive, your weapons may have an attack bonus of +1 to +5 when other players will notice that weapon, it will trigger them to desire the red ones in that fashion.
Uniqueness - What about art and digital objects does your narrative exist outside of your universe? The value of your work will most likely be significantly decreased if it’s already been released into the public eye, for any number of reasons. Banksy led the way for unique NFTs, burning one of his originals so that it became the only existing copy, setting the standard for the method of creating these.
World First - Are you the first company to make something happen by creating an NFT? Even if this is done for purely PR purposes, this can prompt an increase in followers and positive responses from the community. For example, the world's first NFT-based 3-D AR marketplace has been currently in development at Zoo Labs to release in early 2021.
Lord knows that as the world of NFTs grow there are going to be more ways to get that bag, but one thing that it will always require is a handful of the 11 or more things that bring value to this wacky world of NFTs. One thing is for certain, this is just the beginning an the best is yet to come.