Non-Fungible Tokens (NFTs) are a new form of digital asset that can have unique properties such as being one of a kind, having ownership rights, and being measurable. In many ways, NFTs represent the next generation of digital assets that are more useful for gaming, virtual goods, and other blockchain use cases, where unique tokens are important.
Users can buy and sell NFTs like any other token on exchanges, but their value is still relatively low compared to tokens with standard non-unique functions. To increase the value of NFTs we need to move from the perception that NFTs are just digital arts, to the understanding that NFTs can also represent a marketable brand.
NFT brands that comes with specific characters and great storylines have the potential of making money from merchandise sale, or even movies/animations that adopt their characters and storylines. They can also be used as token in games and applications.
Here are five ways you can increase the value of NFTs you want to create or currently own.
Add scarcity with graded NFTs
One way to add scarcity to NFTs is to establish graded NFTs that can be traced to a physical item. This can help create a market for NFTs based on scarcity, since the supply of graded NFTs tied to physical items is fixed. This is similar to the collectible card game trading economy, where the value of cards is tied to the demand for the physical cards, along with their scarcity. One example of this is with CryptoKitties, where a portion of the kitties are tied to an NFT that is graded to represent the rarity of an early generation CryptoKitty. This helps create a collectible NFT economy based on the scarcity of graded physical items.
Build games and apps that are fun to play
One way to increase the value of NFTs is to build games and apps that are fun to play. The most important thing with NFTs is that they're built to be fun and provide value to users. If they don't, they won't have a community, and without a community, they're not valuable. This is true for all digital assets, but even more so for NFTs, which are more likely to be collected than used in the way that utility tokens are used. If you're building a game or app with NFTs, make sure you have a killer game or app that people enjoy playing. The token economy shouldn't be an afterthought or something that feels tacked on. It should be an integral part of the game that improves the user experience, brings people together, and creates value for all participants.
Create demand with airdrops
Airdrops can be a great way to create demand for NFTs by giving them away to people in exchange for their attention and a promise to spread the word about your game or app. This can be a great way to bootstrap the NFT economy for your game or app, especially if you have a large following on social media where you can reach a lot of people very quickly. One thing to keep in mind when creating an airdrop is to give away a small amount of NFTs that people can actually use in your app. Giving away large amounts of NFTs that are unspendable can be frustrating to users and doesn't really create any value.
Create demand with oracles
Oracles are third-party applications that provide data to smart contracts. They can be used to create additional demand for NFTs by creating new ways to use them in games and apps. For example, an oracle could be created that provides weather data to a specific NFT, which could then be used in a game as additional gameplay. Oracles can also be used to create supply for NFTs by generating new NFTs based on data from oracles. Example: In the board game Escape from the Citadel, players can use their
influence tokens to purchase oracles that can be used to disrupt other players. The oracles used in the game are based on real-world data, so they can be traded like NFTs and have a second use as a tradable asset.
Create demand with unique digital goods
One way to increase the value of NFTs is to create unique digital goods within your game or app that can only be purchased with NFTs. This creates demand for NFTs, since players will have to purchase these goods with NFTs to participate in a certain aspect of the game. The goods can then be sold on secondary markets like exchanges to generate real value for the NFTs. You can also create demand for NFTs by creating unique content within your game or app that can only be purchased with NFTs. This can range from new levels to new characters and other content that players will have to buy with NFTs to fully experience the game.
Conclusion
NFTs are a new and exciting digital asset that can have unique properties such as being one of a kind, having ownership rights, and being measurable.
In many ways, NFTs represent the next generation of digital assets that are more useful for gaming, virtual goods, and other blockchain use cases, where unique tokens are important. Users can buy and sell NFTs like any other token on exchanges, but their value is still relatively low compared to tokens with standard non-unique functions. To increase the value of NFTs so they reach their potential, we need more games and applications that make use of them. To do this, creators need to add scarcity to NFTs, build games and apps that are fun to play, create demand with airdrops, create demand with oracles, create demand with unique digital goods, and create a robust economy for NFTs by developing applications that make use of them.