What are NFTs? Related products sold for tens of millions? - Shop to Earn Powered by $AMT

What are NFTs? Related products sold for tens of millions?

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AMT NFT marketplace is new fortune for the E commerce owner

$69.346 million, this is the NFT digital artwork “Every Day: The First 500 Days” created by artist Beeple Final sale price at a Christie’s auction in March 2021. This far-reaching auction, on the one hand, has placed Beeple among the top three contemporary artists in terms of sales. On the other hand, the concept of NFT, a digital asset, has attracted more and more public attention, which has detonated global popularity and continued to increase its commercial value.

  • What are NFTs?

Now to answer the core question, what is NFT? In fact, NFT is Non-Fungible Token, which is literally translated as a non-fungible token. As we all know, blockchain technology is a decentralized digital ledger technology, and NFT is an asset digitization method based on blockchain technology. In actual scenarios, NFT does not refer to a specific form of digital assets. On the contrary, the scope of NFT is very broad and can be any form you can imagine, such as pictures, music, videos, online collectibles, and even a tweet. special. Any information such as creation, modification, and transaction of these NFT digital assets will be recorded on the digital ledger of the blockchain one by one.

Up to now, more and more brands and celebrities have begun to participate in the emerging field of NFT, and even a special trading market has emerged. As the world’s largest NFT trading platform, the trading activities on OPENSEA are very active, related commodities are various, and the value of NFT digital assets in the market is also rising.

  • What are the characteristics of NFTs?

To discuss the value of NFT in depth, we need to start from its characteristics. So the question is, what is the difference between NFT and Bitcoin, Ethereum or other virtual tokens that we often say?

Although they were all born in blockchain technology, they also have the characteristics of decentralization, traceability of the whole network, and difficult to tamper with. However, Bitcoin and Ethereum are essentially homogenized tokens, while NFT represents non-homogenization. Tokens, the most obvious difference between the two sides is the concept of “homogenization”.

As the name implies, homogenization means exactly the same. If two people hold bitcoins in their hands, it is completely feasible for them to exchange the same amount according to the number, and there will be no impact or change. But non-homogenization is different. Each NFT is a unique digital asset. This asset will not form an equal exchange in a quantitative sense, nor will it be divided into smaller units of NFT. Therefore, compared with the attributes of “coins” in other virtual currencies, the existence of NFTs focuses more on the attributes of “things”, which is their most essential difference and the value of NFTs to the market.

NFT digital assets

THE DIGITAL ASSETS SUPPORTED BY NFT HAVE A CONSENSUS OF RECOGNITION AND CANNOT BE TAMPERED WITH

Before the emergence of NFT, digital assets were more often a file that could be copied at will for the majority of netizens. Whether it is pictures or music, thousands of copies can be copied if you want, so it does not create the role of me as the sole owner of this digital asset, but more of a user. From a visual understanding, through the underlying technologies such as metadata management and distribution smart contracts, NFT is more like adding a certificate of rights to people’s digital assets, and this certificate is recognized by consensus and cannot be tampered with. From the very beginning of creation, it is branded with the property of ownership, which means that subsequent transactions can be carried out on the ownership.

  • How does NFT promote virtual commodity consumption?

Ownership of items may be the most successful concept in the history of human consumption, because it stimulates human possessiveness, and the non-homogenization represented by NFT just caters to this feeling of people. First of all, unique means rarity. There is only one in the world. Just like the Mona Lisa painting, everyone has seen it. Its replica may appear on the wall of the home, on the poster of the magazine, on the screen of the TV, etc. And other places, but only, and only the one in the Louvre in Paris is the original and the most valuable.

And this example can also explain why NFT has detonated the upsurge of global digital commodity consumption. The emergence of NFT has successfully broken the embarrassing situation that digital assets can be easily copied and spread in the trading environment. The original version is always the original version, which maximizes the ownership value of digital assets. And from the technical means, the authenticity, ownership and transferability of digital goods are guaranteed, and each transaction is completely transparent and can be traced back through blockchain technology. This also makes the main reason why people buy NFT works is that unique collectibles can show their special status and cultural circle in the digital field, which is essentially a kind of spiritual and cultural consumption.

After the large-scale popularization of digital scenarios such as the Metaverse in the future, NFT will be a common technology for all asset authentication and transactions in the virtual world to prove everyone’s belonging in the virtual world. And back to the e-commerce application scenarios we care about, whether it is from the stimulation of consumption desire or from the perspective of providing technical convenience for the confirmation and transaction of unique digital assets, the market potential of NFT in e-commerce sales is Very impressive.

In the past, it was not easy for many digital content creators to sell and monetize their works online, because the uniqueness of the works was greatly backlogged due to the reproducible characteristics, which made it difficult to stimulate consumers’ desire to buy. But due to the uniqueness and liquidity of NFTs, they can get rid of the restrictions of a single platform without worrying about being infringed or copied, leaving their works permanently on the blockchain and getting benefits. Therefore, as a producer and seller of digital assets, any individual artist, brand party, etc. can be an e-commerce seller of NFT products , and then seize the opportunity of sales in this digital era.

As an e-commerce seller, how to use NFT to help sell?

At present, major companies at home and abroad are paying attention to the broad sales prospects of NFT, and e-commerce sellers who are interested in this trend, whether they are seeking breakthroughs or transformation , need to combine their own brand positioning and business models, and launch targeted Its own NFT sales strategy to achieve the ultimate goal of combining virtual and reality to help sales.

  • Digital brand merchants: core IP is the killer, NFT completes the closed sales loop

The first is those merchants who regard the sale of digital goods as their main business. NFT can be said to have brought them a long-lost business model that can be continuously realized . Due to the lack of effective monetization mechanisms and platforms, individuals or companies that have previously practiced content creation can only bring their works to the market in a cheap or free form.

But now it is not only content merchants, but also influential individuals in the market can monetize the digital goods created by themselves, opening the door to consumers who are interested in collecting in the market. At the same time, if we go further, at the beginning of the creation of digital content, the seller has incorporated a royalty mechanism into the underlying code of the NFT, then in any future resale process of the product, the original creator will automatically receive a stable Royalty income, and subsequent long-term benefits will be guaranteed.

However, it is worth noting that because it is a scarce digital commodity, the threshold for consumers to purchase will be higher than that of physical commodities. Only with sufficient cultural significance can consumers impress consumers and generate the desire to buy and collect. This means that mastering enough influence or core IP is the brand barrier to selling digital goods. This barrier can be the endorsement of an artist’s influence, or it can be a trendy cultural element within the cultural circle, or a unique scarcity that is welcomed by the market in a certain aspect, etc.

A more representative example is that in 2021, the metaverse platform Ezek and Jay Chou’s trendy brand PHANTACi will launch the NFT project Phanta Bear (phantom bear) in limited quantities for the first time. about 6,200 yuan), with a total price of over 62 million yuan. Due to Jay Chou’s influence, a large number of users poured into the platform’s sales channel as soon as it opened. 3,000 units were sold within 5 minutes, and all were sold out in about 40 minutes.

  • Physical brand merchants: NFT empowers brand value, and virtual peripherals create a circle effect

And those brands whose original main business is the sales of physical goods are also actively embracing the NFT industry after seeing the market potential of virtual goods . For these merchants, they can improve their product matrix by selling NFT digital goods. For example, launching peripheral derivatives related to brand elements is a good way.

In the market, male consumers are naturally more accepting of digital products. At the same time, combined with the influence of the cultural circle that NFT products generally have attributes such as trends, we can see that in the field of physical brands, Many well-known sportswear merchants , including Nike, Adidas, and Li Ning, have launched their own NFT strategies. These brands are more compatible with the consumer circles corresponding to NFTs, so they are also the first companies in the physical field to try virtual economy.

For example, the “Enlightenment” sneaker series in the Li Ning brand line has always been positioned on a trendy route, and the audience is mainly young male customers, so it is more suitable for targeted NFT sales. On September 20, 2021, NBA star Wade, who has a brand endorsement cooperation with Li Ning, exposed photos of a new pair of “Enlightenment” sneakers through personal social media. The reason why this photo caused a heated discussion at the time was that it was a pair of NFT sneakers, a pair of electronic sneaker collections. This pair of artworks is called “Wizard Store in Enlightenment”, which is a new cross-border attempt launched by Li Ning. In addition to the electronic appearance with very fashionable elements and a sense of technology, this pair of electronic sneaker artworks also contains the electronic design of star Wade. signed, making it even more rare and collectible, and it eventually sold for $1.127 million.

Li Ning NFT Collection
THE LI NING NFT COLLECTIBLE “WIZARD SHOP IN ENLIGHTENMENT” RELEASED

This marketing measure has enabled Li Ning to achieve the brand out of the circle to a certain extent, and has opened up a new brand tonality that combines technology and sports in the market. new potential markets.

Everything is ready to start NFT e-commerce sales with Amt.land

After understanding what NFT is and how NFT can be combined with brand e-commerce sales, the next step is to officially start the NFT sales journey. When sellers create NFT commodities, they need to “cast” digital commodities on a special blockchain, and relevant data information will also be recorded on the digital ledger. The most common blockchains today are Ethereum, Polygon, Near and Flow. After the NFT products are made, they also need to be sold on the relevant trading market or their own brand official website .

If it is a third-party platform that specializes in trading NFT commodities, generally only buyers and sellers are allowed to trade in cryptocurrencies such as Bitcoin or Ethereum. If this is the case, limited by the platform, sellers do not have a high degree of mastery of their core sales data, and it is difficult to carry out brand management and consumer data analysis. If NFT sales are conducted through the brand’s own independent station , although the related costs will increase, the independent station sales have certain advantages in terms of autonomy and flexibility in the brand management process, and it is easier to stand out from the market. Master more sales data to optimize brand strategy.

AMT.LAND PROVIDES MERCHANTS WITH NFT MERCHANDISE SALES SERVICES

As the industry head agency of independent Saas service providers, AMT provides a perfect service environment foundation for merchants who are committed to NFT sales. At present, AMT.LAND has launched an NFT beta version that supports the use of merchants to sell NFT digital goods and merchants need to actively apply for this service At the same time, the process experience of merchants selling digital goods on AMT.LAND, just like selling other physical goods, does not incur high learning costs and can be quickly adapted.

During the operation of the merchant, the platform will automatically install supported blockchain programs such as Ethereum, Polygon, and Flow into the store, help create and send NFT works, and use AMT Payments to process transactions. The advantage of this is that consumers are allowed to use two payment methods of credit card or cryptocurrency to purchase NFT goods, which greatly reduces the sales threshold for merchants to customers and improves customer purchasing experience. When a customer places an order for an NFT item, they will receive an email instructing them on how to view the NFT item they purchased.

At present, the service only supports the initial sales of NFT products, that is, merchants need their own original digital content, rather than acting as a secondary reseller. In terms of service rates, there are no additional charges for the AMT NFT beta version other than the $2,000 monthly fee for the AMT service itself, and the discretionary charges for apps that mint NFT items. To a certain extent, this also gives merchants the motivation to actively try to embrace the new opportunities brought by the virtual digital industry.

Epilogue

The fire of the NFT concept shows the strong demand for virtual currency and virtual assets in the market. Compared with traditional physical products, the fixed cost of NFT sales will be much lower for merchants, so in the short term, the entire industry will flood into a large number of merchants who are chasing the wind. However, it should be noted that every step of planning and adjustment in the brand development process affects the market’s perception of brand value. The sales of NFT digital assets can be the key to unlocking the profitability of content creators, and it can also be a powerful tool to help physical merchants expand their product matrix, but in any case, merchants still need to find a business foothold according to their own brand positioning and development plans , to be down-to-earth and steadily create value for consumers.

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