Mainstay’s Mindful Leadership contributor, Jacob Berman, discusses strategy around NFT’s for brands.
As the technology of non-fungible tokens (NFTs) continues to grow, big brands are looking for ways to successfully enter the space. NFT adoption has seen explosive growth since 2021, with around 30 million wallets trading NFTs in 2021 rising to an estimated 50 million in 2022 and projected to reach 400 million by 2026 or 2027. For brands, this presents a massive opportunity. If they act now and get ahead of the competition, they can capitalize on this opportunity and create new revenue streams for their businesses.
At the same time, big brands need to remember that this space is still relatively young and understand that it takes time for success. It’s important to take a long-term approach when entering into an NFT market strategy. There is also potential within Web3, which will help drive further adoption of NFTs as people become more familiar with digital wallets, metaverses, decentralized spaces and art aspects associated with them.
By investing in an NFT strategy early on and learning what it takes to be successful within this space through trial and error, brands will have a huge advantage over their competitors. Those who succeed can benefit from increased brand awareness while also generating new sources of income that aren’t tied to traditional markets or industry trends.