If you haven’t paid much attention to Non-Fungible Tokens (NFTs), this is the year to do so. It is another proven avenue for entrepreneurs to make money. Do you want to learn how to make money with non-fungible tokens? There are different ways to make money from non-fungible tokens (NFT) but the three major ones are what we’ll cover in this article.
Before we go into that, let us talk briefly about Non-Fungible Tokens. So, you’ve heard about it in passing, but do you really know what it is?
According to Wikipedia, the first known NFT, Quantum, was created by Kevin McCoy and Anil Dash in May 2014, consisting of a video clip made by McCoy’s wife Jennifer. McCoy registered the video on the Namecoin blockchain and sold it to Dash for $4.
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Definition of Non-Fungible Tokens
Non-fungible tokens are a type of cryptographic token that embodies a one-of-a-kind digital asset. It is built on blockchain technology and functions similarly to cryptocurrency. Now, let us leave big grammar and explain it in simpler terms.
NFT is a digital copy of anything that can be sold, the buyer gets a certificate or markings of ownership that proves that he/she owns the work. The proof of ownership is the certificate that you have, it allows you to resell it if you want to.
Non-Fungible Tokens are owing digital assets. For example, did you know that Jack Dorsey, CEO of Twitter and Square, sold his first-ever tweet as an NFT for more than $2.9 million to Bridge Oracle CEO Sina Estavi?
Okay…I know what you’re thinking. How can a simple tweet like that make so much money? That is the power of a non-fungible token.
Examples of Top NFTs
- Beeple’s “Everydays: The First 5000 Days”
- William Shatner’s memorabilia
- Grimes WarNymph
- Nyan Cat
- Glenfiddich whisky
- Jack Dorsey’s first tweet
- Furniture NFTs
- NBA shots sport collectibles
- RTFKT’s digital sneakers
- Taco Bell GIFs
Are you beginning to see the bigger picture? As an entrepreneur, there are three(3) ways to make money with Non-Fungible Tokens (NFT).
How To Make Money With Non-Fungible Tokens (NFT)
1. Create Value for Digital Assets
NFTs are more popular with collectible items like digital art and virtual goods in video games. A big example will be the sale of a digital artist’s NFT. The history of blockchain technology and the history of art changed forever on March 11th, 2021, when Christie, one of the world’s most prestigious auction houses, sold Beeple’s NFT work of art for $69 million. What a ‘wawu’!
As an entrepreneur, you can grow to have more digital assets such as brand licensing, event ticketing, real estate, and even tokens of tangible assets, which are all potential use cases being explored.
Read also: 5 Ways To Monetise Your Twitter Spaces
2. Take Advantage of the New Monetization Models for Digital Media
The upsurge of NFTs has reignited discussion about developing a new media ownership model that is more creator-centric.
The greater the popularity of a piece of digital content, the greater the number of people who want to own it. Original creators receive a percentage of the sale price each time the work is resold.
A TikTok video’s success is measured not only by the number of views it receives but also by the number of copycat versions influenced by it, each slightly different from the original as people add their own spin to it. The more copycats there are, the more popular and valuable the original becomes.
The ability to make branded digital assets remixable and non-fungible is what NFTs provide you, the entrepreneur.
3. Tokenize Access to Services
You can make money with NFT by thinking of it like buying tickets to a show, only this time it’s a digital ticket. This opens up a new avenue for brands and entrepreneurs to monetize access management.
In a Medium post, Richard Yao mentioned $RAC, a social token issued by recording artist RAC, a Portuguese musician, who granted token holders access to a private Discord group and early access to merch drops.
Digital tickets are easily transferable and interchangeable because they all serve the same purpose of authenticating access to exclusive experiences and events. NFTs add to this by making each ticket unique in and of itself, beyond its functional value, similar to a ticket stub autographed by a celebrity.
We have laws and deeds in the real world to prove and protect the ownership of valuable assets; we now have NFTs in the virtual world. The value of NFTs, like the value of most man-made objects, is determined in the end by the number of people who believe in it and agree to uphold it.
Do you believe you can create digital content that people will find appealing? Or you can purchase an NFT and resell! Remember, the asset has to be as valuable as a first tweet or as valuable as people will choose to believe in it.