Token-backed NFTs could be the next big trend in the cryptocurrency industry

During the cryptocurrency bull run, overpriced digital art and wacky monkey jpegs were the main reason most people got into NFTs. They didn’t care much about the underlying technology, and as a result, its potential in multiple fields of traditional industries has been somewhat forgotten.

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Technology today is only used to about 20% of its true capabilities. There is much more to NFTs than just being a representation of someone’s ownership of digital objects. For example, NFTs can be used like event tickets, recording important information and storing it on the blockchain, instead of using barcodes or QR codes, which can be easily forged.

In the supply chain, fashion powerhouses like Prada and high-end luxury goods like Cartier use NFTs to trace their products in their respective supply chains.

In the gaming industry, NFTs seem like a particularly great tool to use: Gamers want to own the items and collectibles they earn by playing games, and NFTs provide that ownership and allow them to move their items around whenever they want. This also includes the ability to sell those items in the secondary market for real money, thus adding another handy utility feature to NFTs.

We are now seeing multiple trends grabbing the attention of users and investors alike and the outlook for NFTs in 2023 can be very bright. However, to succeed non-fungible tokens will require new value and innovative approaches.

NFT 2.0: the rebirth of NFTs

As I see it, one of the potential avenues that NFTs could take in their evolution is NFT Token Offering (NTO), a new form of token distribution. Compared to traditional crowdfunding methods, an NTO can bring additional benefits to users, companies and content creators as well as providing them with access to some of the project’s tokens.

Let’s take a deeper look at the benefits an NTO can provide. First of all, the NFTs offered through an NFT token offering should realistically be backed by the company’s native token which is already publicly traded and has an ongoing market rate. This lends real value to the NFTs on offer, making them a more viable investment option and greatly reducing the risk of investors losing their money.

Furthermore, distributed NFTs may contain not only tokens, but also various extra rewards and bonuses, such as cashback, reduced vesting and lockup periods, etc., hidden within them.

All of this serves to revolutionize the NFT ecosystem, bringing new meanings to this market. Following the NTO model can allow NFT companies to increase their investments and expand their communities, producing new utility and income opportunities for cryptocurrency users and content creators.

An important advantage of NTOs is that projects can organize token sales without putting pressure on the price of their parent token to sell. Instead of the typical mechanism, most tokens included in NFTs can have different lockup and vesting periods, making them more flexible for investors.

Furthermore, if the project has integrated Web3 wallets like MetaMask into its offering, this would also allow users to buy and sell their NFTs on the secondary market, as MetaMask is integrated into various NFT marketplaces.

Final Thoughts: NFTs aren’t dead, they’re evolving

In conclusion, I would like to reiterate my point: 2023 could be the renaissance year for NFTs as a technology with potential use cases beyond anything seen so far. The industry has a chance to recover the volume levels of 2021, but with better infrastructure, better tokenomics and more added value for the end user.

There is a lot of room for improvement and a lot of development is happening behind the scenes. As the industry progresses, it will likely continue to encounter detractors and crashes and innovate to overcome barriers. However, one thing is clear: NFTs are here to stay, they just need an extra push.

Vladimir Gorbunov
Vladimir Gorbunov, founder and CEO of Choise.com

Vladimir Gorbunov is the founder and CEO of the cryptocurrency firm Choise.com. He is a professional entrepreneur with a long experience in creating and developing fintech projects. The total capitalization of Vladimir’s projects exceeded one billion dollars as of early 2022. As a professional businessman, he is interested in developing new, never-before-seen solutions that can benefit society and improve the quality of life daily.

The subject matter and content of this article are solely the views of the author. FinanceFeeds assumes no legal responsibility for the content of this article and does not reflect the views of FinanceFeeds or its editorial team.

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