Non-fungible token (NFT) platforms in India are counting on brands to help them grow their businesses because artists and creators are losing interest. Creators saw the NFT space as a new way to make money, but brands see it as a way to connect with and keep customers.
“Artists are having trouble making a living and are looking for other ways to make money “Prasad Bhat, an artist from Bengaluru who has listed his works as NFTs on sites like WazirX and OpenSea, said this.
NFTs are made with blockchain technology and work like digital property deeds. Artists and creators saw platforms like OpenSea as a way to bypass traditional ways of showing off their work during the crypto boom of 2017. But since the crypto market has turned bearish, NFT marketplaces have also lost money.
After the crypto market crash in May and June, both the number and value of NFT transactions went down. Chainalysis, a crypto research company, says that sales of NFTs in June were just over $1 billion, which was the worst performance in the last 12 months.
Dhruv Saxena, who is in charge of strategy at the NFT and gaming company Fantico, said that the hype that drove the first phase of NFTs was mostly paid for by extra capital. “At first, NFTs were interesting to people who traded stocks and cryptocurrencies. Liquidity went down when stocks started going down and crypto portfolios started going down. All of a sudden, NFT artists are finding that no one is buying their work anymore “said Saxena.
On the other hand, brands see NFTs as a way to keep customers interested. Stakeholders say that more brands have come out with NFT collections in the past few months.
In July, UK-based consumer electronics company Nothing airdropped NFTs on Flipkart’s first NFT platform, which was also its first NFT platform. With these NFTs, the company hoped to get people to sign up for its Nothing Phone 1 smartphone as soon as possible. They let customers know about upcoming events, products, and gifts from the company before anyone else.
Mafatlal Industries, which makes textiles, has also said that it wants to open a metaverse gallery and an NFT store on Comearth, which is an e-commerce metaverse platform started by NFTically in Gurugram. Other companies include MakeMyTrip, which sells tickets, and MG, which makes cars. Both of these companies used KoineArth’s ngageN platform to launch NFTs earlier this year and last year, respectively.
Toshendra Sharma, CEO and founder of NFTICALLY, said that the drop in the value and number of NFTs has not affected the business interest. Instead, it has made people more interested. NFTICALLY is working with “multiple brands” right now “, and she thinks that more brands will start NFTs in the next few months.
“The best way to fight the downturn is to sell, get people involved, and keep metrics in good shape “said Sharma.
Unlike cryptocurrency exchanges and decentralized finance (DeFi) platforms, NFT firms may benefit from the bear market. Experts said that if more brands join the market, it will make the market more mature and trustworthy, which will help it grow. Sharma says that brands pay a subscription fee to use NFTICALLY. He does this by giving them a software-as-a-service (SaaS) product that helps them build their own NFT platforms.
“When big brands come in, smaller brands follow and bring volume with them, which means more growth “Sharma added. HubSpot released a report in May that said 39 percent of marketing professionals who used NFTs for brand engagement found that it gave them the best return on investment of all the tools they used.
Chandra said that the next phase, which is coming to a close quickly, is where real engagement will be made by giving NFT holders premium experiences.
Pedro Herrera, a data analyst at DappRadar, warned that creators who want to sell an NFT for more than it’s worth are probably not going to get much traction. “The future looks good for people who want to make assets that are smart and can be programmed “he added.