Why Utility NFTs Are The Future Of Virtual Tokens
Listen up: there’s a new(ish) kid on the NFT block. Okay, maybe we’re exaggerating a bit. One year in real life is at least 10 years in the world of NFTs, but it’s safe to say that NFTs with real-life utility have seriously arrived. Forget the cute PFP – we’re all about the utility!
Why? Because selling NFTs that offer real-life experiences or physical items is what’s going to take Web3 and NFTs stratospheric. We need widespread adoption – and this is (we think) how it will happen.
The Web3 crystal ball is out, but before we get too carried away… let’s start at the beginning. What is a utility NFT? Are utility NFTs the future? And what does this mean for PFP (profile picture) projects?
Here’s everything you need to know about the next big thing in NFTs: real-life utility.
What are utility NFTs?
Utility NFTs refer to NFTs that have uses outside of being tradable, digital assets. They’re tokens with real-world uses and benefits attached.
For example, a luxury travel NFT might allow you access to private beach bars across the Costa Del Sol, or even an airport chill zone. A utility NFT in the music world might represent a certain gig ticket, or discounts when purchasing tickets for shows.
Kings of Leon were one of the first mainstream bands to produce a music NFT with built-in utility: in early 2021, the prog rock kings released When You See Yourself as an NFT series. The album release had something for everyone: one of the NFTs gave buyers access to premium seats at Kings of Leon concerts, while another gave the holder a digital download and artwork of the music, and could also be exchanged for a limited edition vinyl of the album.
How is the NFT market changing?
PFP projects certainly aren’t dead in the water. But many experts believe the Web3 landscape is changing permanently.
“We’ve clearly started to see a shift in Web3,” Eliza Genwdalyn, CEO of Blockchn Media, told Meta Hollywood. “Last year, the focus was about the hype of this ‘new technology’ we now call NFTs. Everyone was trading profile images without caring about the utility behind the investment. Then we hit a bear market, and utility is one of the few things that matters to a holder who’s investing in the technology now.”
Eliza’s seen how her own utility projects have gained ground in the bear market, as people look for projects that can enrich – or even simplify – their lives.
“MedacityMD is an NFT collection that allows their holders access to telehealth in the US for a discounted price. At launch, it was too early for the space, as the industry only cared about a quick flip to gain more capital.” Now, the momentum behind Medacity’s Crypto Doc’s NFT is steadily building.
“Another perfect example is RDB Car Club. It’s a Web3 gaming project that has massive real-life utility – the partner company behind the project is the celebrity auto body shop RDB LA. If you hold an RDB Car Club NFT, you have access to a lifetime of discounts at the actual RDB Los Angeles auto-body shop to get your car fixed, and more.
“While car prices are astronomical right now, a discount to fix your car is greatly appreciated during this time. The project is seeing appreciation through its rising community.”
What are the long-term benefits of utility NFTs?
The way we see it, utility NFTs are where the magic will happen long-term. As technology advances, the interoperability of metaverses improves, and Web3 adoption becomes less complex (most people really don’t want to learn the ins-and-outs of a Metamask wallet, let’s be honest!), utility NFTs will ensure the success of Web3 in the long run – without people even realizing they are interacting with Web3 technologies.
Take a universal, non-techy brand like Starbucks. The coffee behemoth is moving into Web3 – and their plan? To use NFTs to enhance their IRL loyalty rewards program without intentionally advertising the nature of the technology powering the experiences. This is the future of virtual tokens: enhancing our lives in the real world, whether we’re technology whizzes or not.
“It happens to be built on blockchain and Web3 technologies,” Starbucks CMO Brady Brewer told TechCrunch, “but the customer – to be honest – may very well not even know that what they’re doing is interacting with blockchain technology. It’s just the enabler.”
Utility NFT projects to keep your eye on…
We’re in a bear market right now. While it’s not the best time to be trading – it’s the perfect time to be building!
We’re big fans of utility NFTs that help with training, and the Real Estate Investment Club (REIC) is a great example of that. Owning an REIC NFT gives holders access to an elite team and community, providing support regarding real estate investment, networking, and professional upskilling.
We also love a utility NFT that offers holders voting rights, and Launch Inc, the NYC-based entertainment company, is a standout example of this.
Launch Inc held its first W3BSTOCK this year – an IRL music festival powered by blockchain and owned by NFT holders. Those holding NFTs get free entry to the festival, free merchandise, and first dibs on accommodation, including of the VIP variety. But the most notable element of the utility is the curation element: NFT owners are in charge of the lineup, with holders voting on the acts playing at the festival, as well as their slot times.
Here at Meta Hollywood, we’re all about democratizing the creative process too. We’re still in construction phases, but let’s put it like this: if you’ve ever wanted to help produce a Hollywood movie… Well – watch this space!
Featured image by Riki 32 on Pixabay
