Crypto

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

During the cryptocurrency bull run, overpriced digital art and quirky 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 areas of traditional industries was somewhat overlooked.

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Today, the technology is only used for about 20% of its real capabilities. NFTs are much more than just a representation of someone’s ownership over digital items. For example, NFTs can be used as tickets for events, 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 giants like Prada and high-end luxury goods like Cartier use NFTs to trace their products through their respective supply chains.

In the gaming industry, NFTs seem to be a particularly attractive instrument to use: players want to own the items and collectibles they earn while playing, and NFTs provide this property and allow them to move their items when they want it. This also includes the ability to sell these items on the secondary market for real money, adding another practical utility function to NFTs.

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

NFT 2.0: the rebirth of NFTs

In my view, one of the potential avenues that NFTs could take in their evolution is the NFT Token Offering (NTO), a new form of token distribution. Compared to traditional crowdfunding methods, an NTO can bring additional benefits to users, businesses, and content creators beyond just giving them access to some of the project’s tokens.

Let’s take a closer look at the benefits that an NTO can provide. First, NFTs offered via an NFT token offering should realistically be backed by the company’s native token that is already listed on an exchange and has a going market rate. This gives the NFTs offered factual value, turning them into a more viable investment option and significantly reducing the risk of investors losing their money.

Moreover, distributed NFTs may contain not only tokens, but also various additional prizes and bonuses, such as cash back, shortened vesting and blocking periods, etc., hidden inside.

All 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, while producing new utility and revenue opportunities for crypto users and content creators.

An important advantage of NTOs is that projects can conduct token sales without putting selling pressure on the price of their primary token. Instead of the typical mechanism, most tokens included in NFTs can have different lock-up and vesting periods, making them more flexible for investors.

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

Final thoughts: NFTs are not dead; they evolve

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

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

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

Vladimir Gorbunov is the founder and CEO of crypto company Choise.com. He is a professional entrepreneur with a long experience in establishing and developing fintech projects. The total capitalization of Vladimir’s projects exceeded $1 billion at the start of 2022. As a professional businessman, he is interested in developing new, groundbreaking solutions that would benefit society and improve the quality of daily life. .

The subject and content of this article are solely the views of the author. FinanceFeeds takes no legal responsibility for the content of this article and they do not reflect the views of FinanceFeeds or its editorial staff.

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