Written by: Vickie Sullivan | April 12, 2022
What the NFT Craze Teaches Us About New Markets
Yep, NFTs are hot right now. According to market tracker DappRadar, 2021 sales of NFTs (non-fungible tokens) top $24.9 billion, a 26,000% increase. This Reuters article is stocked full of interesting stats on this trend.
Look beyond the headlines and ask a bigger question: How can you take advantage of a hot trend without getting burned? The answer is two-fold:
1. Drill down on the driving forces. The fact that NFTs are popular isn’t enough for you to devote your time and resources. There are, however, two factors in a smaller shop’s favor: Buyers are used to buying digital products and most NFTs sell between $100 and $1,000. Before you decide to jump in, look for alignment between these trends and your buyers’ behavior.
Listen: Two “Green Lights” to Look for Before Jumping On a Hot Trend
2. Look for added value. You can add value to something you already have. For example, Sean Ono Lennon sold NFTs of his Beatles memorabilia. But instead of providing standard images in mass quantities, he added value by doing first editions only and including narration of his personal memories. The difference cemented the NFTs’ one-of-a-kind status and drove up the price.
Stats like these make NFTs really tempting. But your decision to jump on any market craze shouldn’t be based on popularity. You need to find similarities between the bright shiny object and your buyers.
Now Read This: