Are NFT's The Future?
Nike is using NFTs to sell their “CryptoKicks”
As cryptocurrency circulation increases so called, Non-Fungible Tokens are becoming more popular. But are NFTs the future? These digital tokens use blockchain tech to establish the ownership of a digital good. Blockchain technology, which cryptocurrencies like Bitcoin rely upon, allows these ownership tokens to be stored, traded, and purchased at any moment.
The MFactor of 8 in March of 2020 to 48 in March 2021, and while NFTs’ momentum owes much to artists like Beeple, who sell pieces of art for millions of dollars, established companies are also using NFTs to enhance their business processes too. This could signify an emerging opportunity for business development across industries. As Mark Cuban has pointed out, "you can sell anything digital using NFTs… anything our imagination can come up with."
The MFactor for NFTs. MFactor is a proprietary tool that measures cultural momentum through topic modeling and sentiment analysis.
Are NFTs the future or just hype?
In July 2019, the NBA teamed up with blockchain company Dapper Labs to launch TopShot. TopShot is a site that allows people to collect digital basketball highlights, such as this LeBron James highlight, which depict pivotal moments from specific games. Put simply, the NBA sees TopShot items as the Information Age equivalent of collectible basketball cards and it's not just hype.
CryptoKicks and TopShot
To date, TopShot has generated over $230M in sales, fifty percent of which occurred in February 2021. The LeBron James highlight mentioned above earned $200,000 on the resale market.
Nike has also launched its own NFT system using blockchain to track ownership and verify the authenticity of sneakers. In December of 2019 Nike issued a patent for blockchain-compatible sneakers called “CryptoKicks” and although there hasn’t been much news since the announcement, the support of one of the largest sneaker and apparel companies in the world demonstrates why NFTs have huge momentum. With companies like Nike backing them, are NFTs the future? It looks like it.
Blockchain Startup SUKU
Similarly, blockchain startup SUKU, a marketplace that tracks luxury goods, has implemented NFTs into physical tags associated with its high-end sneaker authentication system. Established secondary market site StockX has bought into SUKU, believing the technology will help reduce authentication costs by verifying and certifying ownership digitally for the entire transaction lifetime of a physical good.
As companies explore the applications of NFTs beyond digital art sales, momentum is likely to rise. Popular companies using NFTs are helping explain the technology to the general public while demonstrating new applications, and established brands are experimenting with one-of-a-kind digital experiences, digital products, and digital collectibles. This will extend their brands’ presence into cyberspace.
Are NFTs the future? Absolutely, and it’s only a matter of time until they become integral to digital pushes across all sectors.