Following up our previous article on the increasing use of NFTs for business strategy, we decided to further explore how NFTs are being creatively used right now for engagement and effect. According to a report by Grand View Research , the global NFT market size is expected to reach $211 billion by 2030, growing at a compound annual growth rate (CAGR) of 34.2% from 2023 to 2030.
To better learn how NFT design and applications can heighten business communities, we reached out to Institute member Divya Prashanth, CEO of London-based HQNFTs.xyz – a revolutionary world first No-code, advanced NFT creation platform which also provides smart contracts, rarity ranking, and sentiment analysis. The platform essentially opens up accessibility to NFTs to a much wider global audience of users and applications. We asked her questions to learn from her experiences on the innovative dynamics of working in the NFT landscape.
Hortz: Can you explain what kind of mindset and approach you need in working with NFTs as an engagement medium and business tool?
Divya: It’s important to have a growth mindset and an entrepreneurial approach. NFTs are a new and rapidly evolving technology, and it's important to remain open to new possibilities and ways of thinking. Some of the key mindsets which can be helpful include:
Creativity Mindset: NFTs offer a wide range of creative opportunities, and it's important to approach them with a creative mindset. Think outside the box and explore different ways to use NFTs to engage with your audience.
Flexibility Mindset: The NFT market is still in its early stages, and it's important to be flexible and adapt to changes as they happen. Keep an eye on market trends and be prepared to pivot your approach as necessary and the application.
Risk-taking Mindset: Like any emerging technology, NFTs come with some level of risk. However, taking calculated risks can also lead to great rewards. Be willing to take risks and experiment with new ideas.
Collaborative Mindset: The NFT community is highly collaborative, and it's important to work with others to build relationships and create new opportunities. Look for ways to collaborate with other artists, creators, and businesses in this space. The community is very welcoming and inclusive.
Education Mindset: NFTs are complex and constantly evolving, so it's important to stay informed and educated about the latest developments. Read up on NFTs, attend industry events, and connect with other people in the space to stay up to date on the latest trends and best practices.
Hortz: Armed with those mindsets, what approaches do you suggest someone initially take in entering the NFT space?
Divya: When working with NFTs as an engagement medium or business tool, the approaches you need to keep in mind include:
Think beyond the transaction: While NFTs can be used to sell unique digital assets, they can also be used to engage audiences in a variety of ways, from gamification to community building. Consider how you can use NFTs to create meaningful interactions with your audience.
Build a strong community: NFTs thrive on community engagement and participation. As such, it's important to build and nurture a strong community around your NFTs. This includes engaging with your audience, responding to their feedback, and involving them in the creation and promotion of your NFTs.
Focus on storytelling: The best NFTs tell a story that resonates with their audience. Think about how you can use NFTs to convey a narrative or convey a message that is meaningful to your audience.
Embrace experimentation: NFTs are a new and rapidly evolving technology, so it's important to be open to experimenting with different formats, platforms, and approaches to see what works best for your goals.
Be transparent and ethical: NFTs have been criticized for their environmental impact and lack of transparency in some cases. To avoid these issues, it's important to be transparent about the environmental impact of your NFTs, as well as any fees or commissions involved in the creation and sale of your NFTs.
Overall, working with NFTs requires a forward-thinking, creative, and community-focused approach. By embracing experimentation, building a strong community, focusing on storytelling, and being transparent and ethical, you can use NFTs to engage your audience and achieve your business goals.
Hortz: What then is the actual design process needed in creating the right kind of NFTs to address a specific strategic purpose?
Divya: The design process starts with first determining what is the ultimate specific purpose of the collection. What are you trying to achieve? Are you looking to increase brand awareness, generate revenue, create unique experiences for users or provide authenticity?
Identify who is your target audience for the NFT, this will determine the design elements and features that are most likely to appeal to the intended audience.
Determine the type of NFT, there are many different types, including art, collectibles, game items, and more. Depending on the strategic purpose and target audience, one or more of these types may be more appropriate.
After establishing the above parameters around your purpose, now you can define the specific design elements. This could include the visual appearance, functionality, and other features of the NFT.
Hortz: What are the mechanics of launching NFTs?
Divya: Next step after the initial design process is to select the blockchain platform, Ethereum, Polygon, etc. The selected platform will determine the technical requirements for creating and deploying the NFTs.
Once the design and technical requirements are defined, the NFT needs to be developed and tested. This involves creating the necessary smart contracts, deploying them on the selected blockchain platform, and testing the NFT to ensure it functions as intended.
While all this is going on, marketing and promotion to the target audience will be required before the launch. This can include marketing campaigns, social media promotion, and other tactics to generate awareness and interest in the NFT.
By following these steps, it is possible to create NFTs that are specifically designed to address a specific strategic purpose and appeal to the intended audience.
Hortz: I heard that you have been collaborating with SpaceX. What are you working on there?
Divya: There is a project with Space X, and their partners to place the Lunaprise Library on the Moon. The library will be held within an indestructible time capsule, as part of a payload which is scheduled to be launched into space during the summer of 2023 and land on the lunar south pole.
This museum will consist of a wide cross-section of the works of 222 artists, of which 44 are NFT artists of this generation. This collection of art represents the history of humanity. The time capsule will host digital music, film, fine art, NFT art, photography, and art collections which will be preserved for at least one billion years. The value of which should go through the roof!
There will also be a virtual Lunaprise museum which will house a digital twin of all the artifacts which are being sent to the moon. This will be hosted in the Metaverse Museum and will be accessible to the public.
Here at HQNFTs, we are involved with several projects on the mission, these include Scott Page’s collection, the Saxophonist from Pink Floyd. We will be involved from the creation of the collections to onboarding tens of thousands of users onto our platform.
Hortz: I heard that you spoke to the House of Lords recently on metaverse and Web3. What was your message?
Divya: It was an experience as there were 24 speakers addressing them. We created an NFT collection around the event that we could share with everybody; participants could claim the NFT on the day of the event.
The purpose of creating an NFT collection for the House of Lords was numerous. We created a collection of NFTs which are called phygitals; they are both physical and digital. The physical was represented as a collectable card, and the digital element on the physical cards which were accessible to and directly located on the blockchain. The purpose was to demystify, remove barriers, fears, educate and further the conversation. Many people have heard and talked about NFTs, but it’s much easier to understand if you can see, feel, and touch, it makes it relatable and real.
Hortz: Since NFTs are a relatively new tool , where do you see that we will be in this landscape in another 3-5 years?
Divya: In the next 3-5 years, I can see NFTs being used in numerous areas and applications. I can see that the world of digital art and collectables will continue to be used in this way, with more and more artists, musicians, and creators turning to NFTs to monetize their work and connect with fans.
However, there are many other potential applications for NFTs beyond art and collectibles. For example:
Gaming: NFTs could be used to represent in-game assets, such as weapons, amour, and other virtual items. This would allow players to buy, sell, and trade these items outside of the game, potentially creating a whole new economy around gaming.
Real estate: NFTs could be used to represent ownership of real estate, allowing for easier and more secure transactions of property. This could streamline the buying and selling process, reducing the need for intermediaries like real estate agents and lawyers.
Identity: NFTs could be used to verify identity, allowing individuals to prove their identity without relying on traditional forms of identification like passports or driver's licenses. This could be especially useful in developing countries where many people lack formal identification.
Supply chain management: NFTs could be used to track and verify the authenticity of goods as they move through the supply chain. This could help to reduce fraud and counterfeiting, as well as improve transparency and traceability.
Overall, NFTs have the potential to revolutionize many industries by providing a secure and transparent way to represent ownership and authenticity. In the next 3 to 5 years, we are likely to see more and more use cases emerge as companies across all industries and individuals experiment with this new technology.
The increasing adoption of blockchain technology, rising demand for digital ownership rights, and growing interest in virtual assets and gaming are some of the key factors driving the growth of the NFT market. The market is expected to expand due to the increasing adoption of cryptocurrency worldwide. This is because people use cryptocurrency to buy digital assets. CoinMarketCap reports that as of March 2023, the total global capitalization of cryptocurrency is worth USD 1.14 trillion.
Hortz: What best advice or recommendations can you share with business leaders in marketing, strategy, and client engagement/retention areas?
Divya: My best advice revolves around these key points:
Understand your target audience: NFTs appeal to a variety of people, but they may not be the best fit for every audience. Identify who your target audience is and create NFTs that cater to their interests. For example, if your target audience is art collectors, you could create NFTs that showcase unique pieces of art.
Educate your audience: Many people are still unfamiliar with NFTs, so it's essential to educate your audience on what they are and how they work. This will help build trust and understanding, which can lead to increased engagement and sales.
Create unique and valuable NFTs: To stand out in the NFT marketplace, it's crucial to create unique and valuable NFTs. This can be achieved by collaborating with artists or creating limited-edition NFTs that are only available for a short period.
Engage with your audience: NFTs provide a unique opportunity for businesses to engage with their audience in new ways. Host events or giveaways, share behind-the-scenes content, and offer exclusive access to NFT buyers to build a community and create a sense of exclusivity.
Ensure transparency and security: As with any new technology, there are concerns around transparency and security. Ensure that your NFTs are created and stored on a secure blockchain platform and provide clear information about ownership and authenticity.
Experiment with different formats: NFTs are not just limited to digital art. You can create NFTs for music, videos, virtual real estate, and more. Experiment with different formats to find what works best for your business and audience.
Integrate NFTs into your existing marketing strategy: NFTs should not be viewed as a standalone marketing tactic. Instead, they should be integrated into your existing marketing strategy to complement other channels and tactics.
Overall, the key to success with NFTs is to understand your audience, create unique and valuable NFTs, and engage with your audience in meaningful ways. By doing so, you can build a loyal, engaged following and drive sales and revenue for your business.